The complex nature of managing the asset and liabilities book for a financial institution necessitates adopting best industry practices to identify, quantify, report, and manage the interest rate risk. What sort of KPIs and triggers should be considered? And how to frame a governance framework around the hedge decision-making process? These questions and more are part of our ongoing interactions with financial institutions.
We aim to assist our clients in optimizing their balance sheet. And advice on the most economically viable solution to withstand market volatility and turmoil, while adapting and complying with regulatory standards. We pay close attention to the establishment of a hedging protocol to detail the approved hedge counterparties, threshold limits and methodology for allocation of hedging.