Asset/Liabilities Management (ALM) Risk Metric

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The statement "A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk" is generally true.

In Asset/Liability Management (ALM), various metrics are used to measure and manage risks associated with assets and liabilities. These metrics are usually quantitative and help to standardize and simplify risk assessment.

Examples of metrics used in ALM include duration, convexity, interest rate gap, and value at risk (VaR). Duration measures the sensitivity of a portfolio to changes in interest rates, while convexity measures the portfolio's curvature of price changes relative to interest rate changes. Interest rate gap measures the difference between the rate-sensitive assets and rate-sensitive liabilities, and VaR estimates the potential loss in a portfolio based on a certain level of confidence.

Using these metrics, ALM professionals can identify potential risks in their portfolios and take appropriate measures to manage those risks. For example, if a portfolio has a high interest rate gap, the ALM professional may recommend increasing the duration of the portfolio to reduce the gap and lower the portfolio's sensitivity to interest rate changes.

In summary, metrics are indeed a measurement standard or yardstick for quantifying ALM risk, allowing ALM professionals to better understand and manage risk in their portfolios. Therefore, the statement "A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk" is true.