Combining the power and flexibility of SmartModels™ Investor with the sophisticated interest and liability modeling capabilities offered by Stage III, the Balance application tackles complex problems in enterprise-wide financial risk management. Many analysts disregard the interdependence of liability and investment factors, yet an understanding of risk drivers and level of expected correlation among risk factors can lead to surprising solutions to even the most fundamental problems. As a result, an analyst using Balance can create alternatives with potentially enormous bottom line impact.
The user has the ability to solve for a variety of objectives using one of three main solution types:
This tool allows analysts to achieve a deep understanding of the effects of market risk on the balance sheet, but more importantly, generate alternative strategies that can lead to far more efficient use of finite risk budgets.