The financial backgrounds of our Second Pillar consultants enable us to extend our services beyond critiquing risk management practices and provide fresh eyes and industry best practices to assist organizations with managing their balance sheets based on sound risk management practices.


Second Pillar Consulting has helped evaluate and manage various components of their balance sheets in a range of engagements, including:

  • Asset Liability Committee (ALCO) Support - We have provided ALCO services for smaller financial institutions including modeling interest rate risk using our in-house modeling system. We revise existing ALCO reporting to increase the level of clarity and transparency.
  • Model Implementations - Second Pillar Consulting has led numerous successful model implementations. Our roles have included providing guidance on vendor selection and implementation options, appropriate security, input data selection and transformation, and management reporting.
  • Interest Rate Risk Limitations - We perform interest rate risk sensitivity analysis to identify interest rate. We work with the organization to set up the necessary data feeds and provide you with your periodic ALCO reports. Second Pillar Consulting has established interest rate risk limits for many banks and we can help you establish appropriate limits based upon the bank's risk appetite.
  • Funds Transfer Pricing (FTP) Model Validation - We have years of experience in running and building FTP models that provide to support deposit pricing decisions.
  • Deposit Studies - Second Pillar Consulting consultants have conducted numerous deposit studies to better help our clients understand pricing sensitivity and therefore better understand the duration of your deposit portfolio.
  • Prepayment Studies - Second Pillar Consulting can help you in determining the factors and sensitivity of your portfolio loans to prepayment.
  • Liquidity Stress Testing - We have consultants with years of experience in building liquidity stress testing and contingency models.
  • Board Education on Interest Rate Risk and Liquidity Management - We have courses targeted for your quarterly board meetings where our team of experienced experts demystifies the interest rate risk measurement process and explains the fundamentals of interest rate risk in easy to understand terms. Your directors will come away with a deep appreciation of the drivers of interest rate risk in your bank, its impact on earnings and equity and how to better oversee it moving forward.

Please contact us today so that our experienced team can assist your organization navigate the new regulatory environment.

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Bill Nayda:
(804) 432-1629
11174 Lake Shore Ct.,
Glen Allen, VA 23059