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A Welcome From Dave Koch

Thank you for visiting FARIN. Since 1986, FARIN has provided banks and credit unions with asset/liability management education, consulting and software aimed at making better financial decisions, not just complying with regulatory mandates. We can do that, but with the changing guidance on how you are to manage interest rate and liquidity risks, the need for institutional change is here.

Gone are the days when the regulator will tell you how to measure and assess risk. In today’s examination process, the risk identification process rests with the institution. The ability to understand, explain, defend and demonstrate proper use of modeling and risk assessment tools make up the bulk of a regulatory exam on risk management. Institutions that are armed with a good foundation of risk management concepts, proper modeling tools and assumptions that represent their specific issues, are in a position to prosper. However, this information alone is not enough. Institutions must be able to demonstrate the use of these tools in decision making. Where that was once an “exception”, this has changed to an “expectation” for ALCO risk control. FARIN brings you over 26 years of experience in meeting this new challenge. Just taking a look back through our old articles will show you that we have been out front on this issue.

We are often asked, “What makes FARIN different?” While there are many ways to answer this question, I think there is one quality that distinguishes FARIN, and allows us to stand out as an independent, well-respected firm through the many “banking” crises – we don’t take short-cuts.

Growing up, I remember learning there is either a right way or a wrong way to do something. I believe the same is true when looking at how to handle Asset/Liability Management today. The wrong way is to simply do as little as required to make the regulators happy. The right way is about making the asset/liability review into a decision-making process that helps find the right balance of risk and return.

Simply put, our mission is to provide community-based financial institutions with products and services that:

Improve the tools used for making decisions
Inform the ALCO with best practices and the data for decision making
Educate all ALCO members on critical decision-making issues
Involve the entire institution in development of risk management reports
Assist institutions by offering our resources and our intellectual capital to meet resource gaps
Consult with decision makers on opportunities to improve performance and risk

Together, we can partner with you to find innovative solutions to meet your goals. Utilizing our staff with our measurement tools, (FARIN Foresight, Insight, iPrice) and our educational programming, combined with your staff creates a team ready and able to take on these goals.

So, as you look for ways to cope with more competitive pressures, unsettled regulatory environments, or changing economic concerns, please consider FARIN as your first-class partner for the tools, education, and expertise to build desired financial results. We look forward to helping you meet your ALCO needs.

Dave Koch