Elevating risk managers from report-oriented "data jockeys" to individuals whose asset/liability analysis is specifically focused on current performance measurement and risk management projections to increase a financial institution's profitability is a work in progress-and music to any bank CEO's ears. An increasing number of financial industry players are relying on sophisticated technology to address interest rate volatility and the growing complexity of bank portfolios, which translates into a greater need for managing asset-based liability.
One such institution is Chase Manhattan Bank. Although the logistics of merging Chase Manhattan Bank and Chemical Bank were a significant undertaking from an organizational, infrastructural and cultural standpoint, the fusion of their risk management requirements was simplified by RADAR RiskManager, a software package developed by Risk Management Technologies (RMT). The system, which is used to manage the asset-based liability of Chase's enormous balance sheet, delivers analytical results both for specific future economic environments, and, by using Monte Carlo simulation, for a wide range of potential environments simultaneously, allowing institutions such as Chase to better manage the dynamic response behavior of their product and portfolio with full regard for future market volatility.