What Is ALM and Why Should You Care? ALM — Asset-Liability Management — is how banks avoid going bankrupt. They model every asset (loans they've made, securities they hold) alongside every liability (deposits, bonds they've issued) and stress-test the relationship between them. Your personal finances have the same structure. You just never drew the diagram. YOU, INC. ━━━━━━━━━━━━━━━━━━━━━━━━━━