TAKING RISK MANAGEMENT OUT OF THE BASEMENT

Cain Brothers, September 19, 2004

This volume in the Cain Brothers Strategies in Capital Finance series discusses the need to integrate what are too often three separate spheres: operations, assets, and liabilities management. Organizations should have a broad asset/liability management strategy that incorporates both investment management and liability management policies and also gives consideration to pension fund assets and liabilities at the same time. The concept of interest rate management should be captured within and between these policies, since it is the bridge that links them. Further, integration of the operating plan is just as important as the inclusion of interest rate management, if an organization wants to have a successful overall asset/liability management strategy that meets the earnings and capital needs of the organization.

Cain Brothers
www.cainbrothers.com

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