As per the RBI Guidelines on Asset Liability Management (ALM) System, the ALM process rests on following three pillars: (i) ALM Information Systems
• Management Information Systems
• Information availability, accuracy, adequacy and expediency.
(ii) ALM Organisation
• Structure and responsibilities
• Level of top management involvement
(iii) ALM Process
• Risk parameters
• Risk identification
• Risk measurement
• Risk management
• Risk policies and tolerance levels.
