Asset Liability Mgmt Policy Review Work Program 1 
Asset and Liability Management Policy Review
Audit Work Program
Project Team (list members):
Project Timing:
Date
Comments
Planning
Fieldwork
Report Issuance (Local)
Report Issuance (Worldwide)
Audit Objectives
Review the organization’s policies and procedures related to interest rate risk and Asset and Liability Management, including liquidity, derivatives, and swaps
Determine if these policies and procedures are reviewed on a regular basis for effectiveness
Assess the Board of Director’s and Asset and Liability Management Committee’s oversight of the Asset and Liability Management function
Time
Project Work Step
Initial
Index
Risk 1 - The Board of Directors (BOD) has not established a policy to guide the organization's strategic direction and tolerance for interest rate risk (IRR) and/or Asset and Liability Management policies and procedures are not aligned with these policies.
1. Ensure the policy includes the following:
Limits for IRR exposure (i.e., maximum amount of risk the organization is willing to accept).
Responsibility for IRR measurement and management
Methods to be employed to measure and monitor IRR and the frequency of rate risk measurement.
Requirements to verify or ensure validity of IRR measurement.
Acceptable and unacceptable courses of action (or instruments) for managing IRR.
Measures taken to monitor policy compliance.
General requirements regarding the frequency and content of system reports to senior management and the BOD.
Coordination of IRR management with other departments and organization activities.
Reporting requirements are established, requiring informative reports to be provided to decision makers in a timely manner.
Risk limits are quantified and provide for timely identification of IRR so that prompt risk mitigation strategies can be implemented.
Risk limits are established for both a short- and long-term cash flow horizon (e.g., both earnings and economic value
Audit Work Program
Project Team (list members):
Project Timing:
Date
Comments
Planning
Fieldwork
Report Issuance (Local)
Report Issuance (Worldwide)
Audit Objectives
Review the organization’s policies and procedures related to interest rate risk and Asset and Liability Management, including liquidity, derivatives, and swaps
Determine if these policies and procedures are reviewed on a regular basis for effectiveness
Assess the Board of Director’s and Asset and Liability Management Committee’s oversight of the Asset and Liability Management function
Time
Project Work Step
Initial
Index
Risk 1 - The Board of Directors (BOD) has not established a policy to guide the organization's strategic direction and tolerance for interest rate risk (IRR) and/or Asset and Liability Management policies and procedures are not aligned with these policies.
1. Ensure the policy includes the following:
Limits for IRR exposure (i.e., maximum amount of risk the organization is willing to accept).
Responsibility for IRR measurement and management
Methods to be employed to measure and monitor IRR and the frequency of rate risk measurement.
Requirements to verify or ensure validity of IRR measurement.
Acceptable and unacceptable courses of action (or instruments) for managing IRR.
Measures taken to monitor policy compliance.
General requirements regarding the frequency and content of system reports to senior management and the BOD.
Coordination of IRR management with other departments and organization activities.
Reporting requirements are established, requiring informative reports to be provided to decision makers in a timely manner.
Risk limits are quantified and provide for timely identification of IRR so that prompt risk mitigation strategies can be implemented.
Risk limits are established for both a short- and long-term cash flow horizon (e.g., both earnings and economic value