The document outlines five essential strategies for managing interest rate risk in financial institutions, including asset-liability management, use of derivative instruments, diversifying funding sources, conducting stress testing and scenario analysis, and ensuring communication transparency. By implementing these strategies, institutions can enhance their resilience to interest rate fluctuations and maintain financial stability. Overall, the document emphasizes the importance of effective risk management practices.

1. Interest
Rate Risk
Management
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2. RTCompliance

3. Asset-Liability
Management (ALM)
1 Asset-liability management involves matching the
maturity and repricing characteristics of assets
and liabilities to mitigate interest rate risk.
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4. Financial institutions can use
derivative instruments such as
interest rate swaps, futures,
and options to hedge
against interest rate risk.
Derivative
Instruments
2
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5. Funding
Sources
Diversifying funding sources,
such as issuing both fixed
and floating-rate debt, can
help mitigate interest rate
risk.
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3

6. Stress Testing &
Scenario Analysis
4 Conducting stress testing and scenario analysis
helps institutions assess their vulnerability to
changes in interest rates under different
economic conditions.
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7. Providing clear and timely
information about the
institution's interest rate risk
exposure and risk
management practices can
help build trust and
confidence.
Communication
Transparency
5
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8. Conclusion
By implementing these five essential strategies for
interest rate risk management, financial
institutions can enhance their resilience to interest
rate fluctuations and maintain financial stability in
a dynamic market environment.

9. THANK
YOU
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