Market Risk Excel Template

Description
The term market risk, also known as systematic risk, refers to the uncertainty associated with any investment decision. Price volatility often arises due to unanticipated fluctuations in factors that commonly affect the entire financial market.
Systematic risk is not specifically associated with the company or the industry one is invested in; instead, it is dependent on the performance of the entire market. Thus, it is necessary for an investor to keep an eye on various macro variables associated with the financial market, such as inflation, interest rates, the balance of payments situation, fiscal deficits, geopolitical factors,
The term market risk, also known as systematic risk, refers to the uncertainty associated with any investment decision.
The different types of market risks include interest rate risk, commodity risk, currency risk, country risk.
Professional analysts use methods like Value at Risk (VaR) modeling, and the beta coefficient to identify potential losses via statistical risk management
Interest rate risk is defined as the decrease of the Bank’s Economic Value of Equity (EVE) or earnings due to adverse movements in interest rates. It arises from timing differences between the revision dates of the rate at which financial instruments bear interest or between the contractual maturity dates.
The Bank manages its interest rate risk position throughout the balance sheet, seeking to maintain a stable revenue profile while monitoring the volatility of the Economic Value of Equity. The Bank also resorts to derivatives instruments to hedge the interest rate risk of its assets and liabilities.