In this in-depth conversation, Charles Richard, co-founder of QRM, explores the evolution of balance sheet management from a narrow asset-liability practice into a more holistic discipline driven by necessity and innovation.

Triggered by the mini banking crisis in the U.S. and persistent market volatility, institutions are being forced to revisit assumptions that have long gone unchallenged—like the idea of rates remaining perpetually low.

Richard emphasizes that balance sheet optimization in today's environment isn't just about running numbers. It's about doing the fundamentals right: understanding the nuances of your institution’s specific risks, deposit behaviors, and the impact of rate changes.

A recurring theme is the need for clarity—banks must know their balance sheet intimately and assess how their underlying assumptions differ from others in the market.

The conversation also critiques the siloed buildouts of risk functions in response to regulatory shifts. Instead of isolated ALM, liquidity, and capital processes, Richard argues for an integrated framework—“one system, one data load”—where overlapping analyses are not duplicated but harmonized.

Such an approach enables more meaningful analysis and faster, more actionable insights.

Looking forward, Richard doesn’t claim to predict the future but insists on readiness for it.

Firms should pivot from repetitive reporting cycles to strategic decision-making that seeks margin enhancement and capital efficiency.

His core message: use data not just to measure risk but to manage it, and invest in the people and systems that can bring this vision to life.