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Author: admin

Post Pandemic IRR Model Assumptions

Posted on January 27, 2025 By admin

Interest rate risk model assumptions are an integral part of the overall asset and liability management process.  Managers and the Asset and Liability Management Committee (ALCO) review and develop model assumptions to ensure the results are reliable for business decisions and managing the balance sheet.  Greater confidence in model results helps management develop business tactics…

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Interest Rate Risk

Sensitivity Testing is the Key

Posted on May 14, 2023September 11, 2023 By admin

With the Federal Reserve rate increases in 2022, Interest Rate Risk Analysis (IRR) might become more relevant rather than just hypothetical. We use IRR to assess the potential exposure to earnings and capital due to rising or falling interest rates. The forecasts are based on estimates of future business activity and include a number of…

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