Which of the following is NOT considered an area of Asset Liability Management (ALM)?

Asset Liability Management (ALM) focuses on managing risks that arise due to mismatches between a company's assets and liabilities, particularly in financial institutions. ALM typically addresses risks related to liquidity, interest rates, and capital management, ensuring that the institution can meet its financial obligations while maximizing returns.

Liquidity risk deals with the potential inability to access cash or liquidate assets quickly to meet obligations. Interest-rate risk involves the potential loss from fluctuations in interest rates affecting the value of assets and liabilities over time. Capital risk also pertains to maintaining adequate capital levels to support operations and absorb losses.

In this context, the area that does not align with typical ALM practices is credit risk. While credit risk is crucial in financial services—consisting of the risk of loss due to a borrower's failure to make required payments—it is more concerned with the ability of borrowers to honor their commitments rather than directly managing the balance sheet in the way ALM does. Thus, credit risk is not typically included as a core component of Asset Liability Management.