COMPARISON OF INTEREST RATE RISK METHODOLOGIES
May 1, 2015
Interest rate risk was originally viewed as a process that should be done in a back room, resulting in volumes of information that was stored on a shelf to be available when examiners walked in. However, the complexity of the world has changed over time and so must the use of tools to help evaluate the trade-offs of decisions being faced. Institutions need to ensure they are getting answers to the right business questions in order to create a solid foundation that links strategy and desired financial performance. While there are many aspects to creating strong and sustainable financial performance, this article focuses on the abilities of the primary interest rate risk (IRR) methodologies to support decision-making.
This article was originally published as a Financial Flash by the CUNA CFO Council. The full article (Comparison of Interest Rate Risk Methodologies) can be found here.
