ALM is the forward-looking, simultaneous management of both assets and liabilities for the purpose of measuring, monitoring and controlling the potentially adverse effects of changing interest rates on income, liquidity, market values, competitiveness, and the financial reputation of the institution. This process is becoming increasingly important as mortgage lending emerges as the core business of credit unions. The long-term nature of mortgage loans can create a structural imbalance between the repricing attributes of the assets and liabilities. To mitigate this potential risk, policies must be in place and the appropriate strategies implemented when necessary.