Balance sheet exposure and Interest rate risk: Difference between pages

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m (Add link to new Pipeline risk page.)
 
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'''1.''' ''Foreign exchange risk''.
The risk associated with a change in interest rates.  
 
Exposure which arises from the process of translating balance sheet items denominated in foreign currency into the group accounts denominated in the parent’s currency.
This may take several forms; increasing interest cost, changing market value of debt or of pensions liabilities, differences in competitiveness, or the changing nature of a market when interest rates change.
 
This is a form of foreign exchange Translation exposure.
 
 
'''2.'''
 
More generally, the risk of adverse effects in the balance sheet arising from foreign exchange risk or from other sources.




== See also ==
== See also ==
* [[Balance sheet]]
* [[Asset-liability management]]
* [[Group accounts]]
* [[Exposure]]
* [[Income statement exposure]]
* [[Interest rate]]
* [[Translation exposure]]
* [[Matching]]
* [[Pipeline risk]]
* [[Risk free rate of return]]
* [[Time bins]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Interest_Rate_Risk]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Manage_risks]]

Revision as of 18:31, 15 June 2014

The risk associated with a change in interest rates.

This may take several forms; increasing interest cost, changing market value of debt or of pensions liabilities, differences in competitiveness, or the changing nature of a market when interest rates change.


See also