Simply known as ALM. 1) In a portfolio management context, it is the management of assets and/or liabilities in such a way as to match cash flows, durations, or maturities of assets and liabilities. 2) In commercial banking, it is the management of the balance sheet including interest rate, prepayment, credit and liquidity risks. There are some institutions that refer to ALM as risk management. Using this title all risks, including operational risk, would fall under this umbrella.