How can ALM Committee help in managing Risks in a Bank ?

The ALM (Asset Liability Management) committee plays a crucial role in managing business risks, particularly those related to a financial institution's balance sheet. It focuses on mitigating risks associated with mismatched assets and liabilities, such as interest rate risk and liquidity risk. The committee develops strategies to ensure that the institution maintains a healthy balance between assets and liabilities (depending on their repayment period), optimizing profitability while staying within acceptable risk parameters.