Question

How to maintain the risk of the market interest rates

Answer 1

First, in the process of maintaining the interest rates, the risk should be identified that is asses all assets and liabilities that are prone to change in interest rates. then The risk of loss of a company’s asset value is to be measured and quantified. According to the quantification the risk protection policy should be established which should be suitable for a risk-return profile of the company. The risk policy is then to be implemented and avoid the risks of interest rates fluctuation.

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