ALM primarily aims to manage which aspect of finance?

Asset Liability Management (ALM) primarily aims to manage cash flow management within an organization. ALM involves coordinating and aligning an institution's assets with its liabilities to minimize risks associated with liquidity, interest rates, and foreign exchange exposures.

The goal is to ensure that cash inflows from assets are sufficient to cover cash outflows related to liabilities, thus maintaining financial stability and solvency. By focusing on cash flow management, organizations can effectively manage risk while optimizing their financial structure, leading to enhanced operational efficiency and strategic decision-making.

Profit maximization, although an important financial objective, is more focused on enhancing overall earnings, which may not directly address the nuances of managing cash flows dynamically in a business. Cost control, similarly, is a narrower aspect that focuses primarily on reducing expenses rather than the broader implications of balancing assets and liabilities. Investment diversification emphasizes spreading investments to mitigate risk, which is a part of ALM but not its primary aim. Therefore, cash flow management encompasses all the critical elements that ALM seeks to address, making it the correct focus for this question.