Interest Rate Risk Simulation Services
 
A rapidly changing and competitive environment makes risk management essential to success in the financial industry today. Interest Rate Risk Simulation is an efficient risk management tool. The simulation results provide your credit union management team with a risk profile of the balance sheet under various market interest rate scenarios. In depth one and two-year and high level three to five-year forecasts are included. The following reports are provided on a monthly or quarterly basis:
  • enhanced static/dynamic gap information
  • economic value/duration statistics
  • simulation results for various rate scenarios
  • Linear Path Space – a structure sampling technique for generating rate scenarios, i.e. stochastic analysis

Interest Rate Risk Executive Summary Report

Risk profiles must be understood strategically to be used to your credit union's advantage. Using results from dynamic interest rate risk simulation, we will produce a complementary executive summary outlining your credit union's major risk exposures. This report contains valuable information that is useful to the board and senior management in making risk management decisions. It also includes static and dynamic gap analysis, net interest margin forecasts, change in market value analysis and stochastic results analysis.