Market Risk Policy

A professionally drafted Market Risk Policy for banks, deposit-taking institutions and finance companies, covering market and interest-rate risk management. Global edition — written to international standards (Basel Committee, FATF, ISO, COSO, NIST and FSB) and deliberately jurisdiction-neutral, with bracketed prompts marking the points where your local law or regulator's requirements must be inserted. Supplied as a fully editable Microsoft Word document, de-identified and ready to adapt to your organisation. Typical owner: Chief Risk Officer; approval: Board Risk Committee.

Preview the first 6 pages (PDF) See the real cover, document control page and opening sections before you buy.

What's inside

• Contents
• 1. Purpose
• 2. Scope
• 3. Definitions
• 4. Regulatory Framework
• 5. Policy Statement and Risk Appetite
• 6. Interest Rate Risk in the Banking Book
• 7. Measurement of IRRBB
• 8. Limits and Thresholds
• 9. Hedging and Use of Derivatives
• 10. Foreign Exchange Risk
• 11. Trading Book Activities
• 12. Valuation and Stress Testing
• 13. Roles and Responsibilities
• 14. Reporting and Escalation
• 15. Breaches of this Policy
• 16. Training and Awareness
• 17. Review of this Policy
• Appendix A: Market Risk Limit Schedule (template)
• Appendix B: Standard Interest Rate Shock Scenarios
• Policy Administration