Next-Gen ALM: Hedging Dashboards That Speak Finance, Risk, and Strategy 

The modern bank or credit union isn’t short on data. It’s short on alignment. 

Treasury, Finance, Risk, and the Executive Team all look at the balance sheet through different lenses. But too often, their tools don’t communicate—and neither do their perspectives. Asset-liability management (ALM) has evolved, but the way many institutions visualize and act on ALM data has not. 

It’s time to change that. Dashboards purpose-built for ALM are helping bridge internal gaps and empower faster, more strategic decisions. 

The Fragmentation Problem 

Most institutions are managing interest rate and liquidity risk using a patchwork of systems: 

• Treasury monitors positions and hedges in spreadsheets or vendor portals
• Finance builds models for NII, margin, and budgeting separately  
• Risk owns stress testing and regulatory scenarios, often in isolation 
• The ALCO gets slide decks built the night before the meeting 

This fragmented approach leads to delayed insights, and an incomplete picture of the institution’s exposure. 

When the rate environment shifts, these delays become dangerous. 

What Next-Gen ALM Dashboards Deliver 

A modern ALM dashboard isn’t just about data presentation—it’s about cross-functional decision-making. 

At Derivative Path, we are building a dashboard specifically for the needs of bank and credit union stakeholders across the organization. It’s designed to: 

• Provide a single source of truth for interest rate risk exposure and hedge coverage 
• Enable real-time sensitivity analysis across rate scenarios 
• Translate technical risk positions into clear business impact 
• Support audit and regulatory documentation with click-through access to underlying data 

In other words, dashboards that speak the language of both Finance and Risk—and are readable by management and ALCO. 

Why It Matters Now 

Post-2020, the pace of interest rate change—and its impact on bank margins—has underscored the need for real-time balance sheet awareness. Banks are also contending with: 

• Increased regulatory focus on rate sensitivity and contingency planning 
• A more active board and C-suite demanding visibility 
• More complex balance sheet structures, including derivatives, securities portfolios, and wholesale funding 

Next-gen dashboards make these dynamics manageable, not mysterious. 

From Quarterly Meetings to Real-Time Management 

Traditionally, ALM was a quarterly event. Today, it needs to be a real-time discipline. 

Next-gen dashboards don’t replace your ALM software or your model—they extend their value by making them usable and understandable across departments. And when paired with hedge advisory and technology infrastructure, they become a living, breathing command center for rate risk and strategic planning. 

Conclusion: Aligning the Institution Around the Balance Sheet 

Modern banking demands modern visibility. The institutions that will lead in this environment are those that break down internal silos and put balance sheet strategy in the hands of more stakeholders—with the right level of detail, at the right time. 

ALM dashboards are more than a reporting tool. They’re an alignment tool.