Turning risk into resilience with ALMIS® One

As financial markets experience continued volatility, banks and financial institutions are under increasing pressure to manage interest rate risk with greater precision.

Traditional hedging strategies that rely on delayed data and static models are proving inadequate. Instead, firms must embrace more dynamic, real-time approaches that not only mitigate risk but also support broader commercial objectives.

Almis International, which helps eliminate siloed data, recently delved into how to master hedging in volatile financial markets. 

The drivers of today’s volatility are varied and persistent—from geopolitical uncertainty to economic shifts and global disruptions. In this environment, managing balance sheets requires constant recalibration. Institutions must assess the risks posed by fluctuating rates and ensure their hedging strategies are both responsive and forward-looking. Small misalignments between assets and liabilities can have disproportionate effects on profitability, making proactive risk management a top priority.

This is where real-time analytics come into play. By continuously tracking behaviours such as drawdowns, prepayments, and deposit trends, institutions gain a clear view of their current risk profile. These insights allow treasury teams to model different scenarios and respond swiftly to potential threats.

But identifying the risk is only half the challenge. Execution is equally critical. Today’s treasury systems offer tools that can automate swap and derivative transactions, integrate live market pricing, and manage collateral obligations in real time.

A well-designed hedging strategy should also tie directly into business performance goals, it said. This means integrating net interest margin forecasting and stress testing into the planning process. Institutions must be able to simulate different rate scenarios and predict how growth or product changes will affect profitability.

Compliance adds another layer of complexity. Adhering to regulations such as IFRS 9 and IAS 39 requires accurate, documented evidence of hedge effectiveness and accounting treatment. Manual processes are error-prone and time-consuming. Automation not only reduces the risk of mistakes but also ensures institutions can produce audit-ready reports and optimise their capital allocation with greater ease.

ALMIS® International addresses all these needs through its ALMIS® One platform—a comprehensive solution that integrates data analytics, trade execution, margin modelling, and compliance into one system. By leveraging the platform’s capabilities, institutions can monitor risks in real time, execute with precision, and ensure their hedging strategies are fully aligned with both regulatory demands and profitability goals.

Read the story here.

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