ALCO, or Asset-Liability Committee, is a group within a financial institution that manages risks related to assets and liabilities. Its primary goal is to ensure that the institution maintains a balance between the risks and returns of its financial activities. This includes monitoring interest rates, liquidity, and capital adequacy to safeguard the institution's financial health. The committee typically consists of senior management and key stakeholders, who analyze market trends and regulatory requirements. By making informed decisions, ALCO helps the institution navigate economic changes and optimize its financial performance while adhering to regulatory standards.