The Four Pillars of an Effective Interest Rate Risk Management Program

With market rates continuing to move and a renewed regulatory focus on interest rate risk (IRR), it’s more important now than ever that institutions have a comprehensive IRR management process in place to identify, measure, monitor, and control the impact that changing rates will have on both short-term earnings and longer-term capital. To be effective, an IRR management program should include a comprehensive corporate governance structure; relevant measurements and modeling; documented and supported institution-specific assumptions; and a thorough control process that includes independent review, validation, and backtesting.

Read more about each of these pillars in this report from Plansmith. Fill out the form below to receive the whitepaper via email. By downloading the content, you may be contacted by the provider.