What does an asset liability manager do?

An Asset Liability Manager is responsible for monitoring and managing the financial risks that arise from mismatches between a company's assets and liabilities, particularly in banks and financial institutions. Their main goal is to optimize the balance between risk and return by analyzing interest rate risks, liquidity risks, and market conditions. They develop strategies to ensure the organization's financial stability, comply with regulatory requirements, and maximize profitability. Asset Liability Managers often use complex models and forecasting to inform their decisions.