Advanced Income Shock

The Advanced Income Shock module of IRR-Solutions® II is designed to model earnings potential for the next twenty-four months given existing item runoff and your anticipated growth, pricing, and prepayment assumptions. By modeling for an immediate shock in rates in seven shock scenarios, the system will produce accurate and detailed results which allow you to analyze the effects of a given rate shock on your balance sheet and net income (your bottom line income risk).

Key Features

  • Adjust balance sheet volumes, along with non-interest income/expense accounts through time, using a variety of growth methods
  • Setting assumptions at any level in your chart of accounts
  • Annotate your assumptions with comments for audit purposes
  • Easily perform "what-if" analysis, with immediate results on screen
  • Modeling and reporting for both Average and Ending Balance Sheet volumes
  • Assumptions by type and by item for Re-Investment and Prepayments can be made
  • Icons to quickly indicate status of your assumptions and results
  • Shared Index Rate and Prepayment assumptions with Advanced EVE module
By utilizing the host system's item details, very accurate modeling of the existing items' reactions to changes in Fed Funds rate is produced; both on screen and in reports. Balancing the balance sheet in the future projection periods is accomplished using Fed Funds Sold/Fed Funds Purchased accounts.