Call us at +1-(510)-868-1040

Login Register cart


This 90-minute webinar provides an overview of ALM principles and ALM measurement techniques. It focuses on auditor issues and procedures related to the audit of the ALM function.

It covers important ALM topics such as:


Liability sensitivity

Monitoring the mismatch of maturing interest sensitive assets and maturing interest sensitive liabilities

Knowing management’s view of the future direction of interest rates

Reviewing strategies used to react to expected changes in interest rates

Understanding “immunity”

Understanding “position management”

Managing the “gap”

  • The purposes for an ALM committee.
  • How decisions of ALM affect the entity.
  • What is interest rate risk (IRR).
  • How IRR is monitored and controlled.
  • How maturities are “manipulated” and “why?”
  • What is immunity?
  • What is position management?
  • What is the composition of high level committee
  • NII models for controlling IRR
  • NPV models for controlling IRR

  • Interest rate risk
  • Liability sensitivity
  • Simulation models
  • Position management
  • Gap positions
  • Immunity
  • Derivative usage for ALM
  • ALM committee composition and duties

Learn about liability sensitivity.

Appreciate the significance of the mismatch between interest sensitive assets and interest sensitive liabilities.

Focus on the issue of knowing management’s and the ALM committee’s decision about the direction on interest rates.

Understand key ideas about immunity, position management, gap, duration etc.

Obtain an overview of NII and NPV approaches to ALM.

Review how auditor’s approach the audit of the ALM function.

  • Senior bank management
  • Selected directors on the Board
  • Controllership personnel
  • ALM committee members
  • Audit committee members
  • Internal auditors – all levels
  • External auditors
  • Primary regulators
  • Risk managers
  • Financial statement preparers

Paul J. Sanchez, CPA, CBA, CFSA, CGMA conducts a small CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University - C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors. He also was on the technical staff of the Auditing Standards and Examinations Divisions of the AICPA. He practiced public accounting in the New York office of Deloitte where he also was a firm recruiter and in-house professional development instructor. He was an owner and auditing and accounting seminar leader for the Person/Wolinsky CPA Review Courses, a company that prepared candidates to pass the Uniform CPA Examination. He is a frequent lecturer and seminar leader for accounting, auditing, banking, risk assessment and other professional presentations. He is the author of the textbook, “Accounting Basics for Community Financial Institutions” (Financial Managers Society, 2nd edition, Chicago, 2009) and the “Ideas an Analysis Letter: The Sanchez Take” (see As a contributing author, his chapter on ‘An Auditor’s Approach to Risk-Based Auditing: What to Audit and When,’ is included in the textbook, “Effective Auditing for Corporates: Key Developments in Practice and Procedures,” (Bloomsbury Information, Ltd, London, 2012).

View all trainings by this speaker
On Demand


PDF Transcript of the Training which are available once the webinar is completed.(Transcript for single user only)


Downloadable Recorded Session

Get unlimited access to the link for six months.


Training CD

Free shipment within 15 Working Days, from the date of webinar completion



Upcoming Webinars