Senior Managers and Certification Regime and Shock: Difference between pages

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''UK financial markets regulation''.
1.


(SM&CR).
''Interest rate risk analysis and management.''


The Senior Managers and Certification Regime regulates individuals working in financial services.  
A change in interest rates, used to analyse interest rate risk.


The aim of the SM&CR is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence by:
The shock is usually a simplified risk modelling assumption (although the source of the assumption could also be an assumed future repetition of an actual shock that happened in the past).


*Encouraging a culture of staff at all levels taking personal responsibility for their actions; and
*Making sure firms and staff clearly understand and can demonstrate where responsibility lies.


The simplest form of interest shock is a change which is:


The SM&CR applies to firms regulated by the Financial Conduct Authority (FCA) and firms regulated both by the FCA and the Prudential Regulation Authority (PRA).
*Immediate; and
*Permanent;
*And which affects all interest rates by an equal amount.




==See also==
2.
*[[Financial Conduct Authority]]
*[[FSMA]]
*[[Prudential Regulation Authority]]


[[Category:Self_management_and_accountability]]
A large, usually adverse, change in market conditions.
[[Category:Financial_management]]
 
[[Category:Ethics_and_corporate_governance]]
 
== See also ==
* [[Back test]]
* [[Down-shock]]
* [[EVE]]
* [[Interest rate risk]]
* [[IRRBB]]
* [[NII]]
* [[Non-parallel shock]]
* [[Parallel shock]]
* [[Up-shock]]
* [[Yield curve risk]]

Revision as of 20:33, 29 October 2016

1.

Interest rate risk analysis and management.

A change in interest rates, used to analyse interest rate risk.

The shock is usually a simplified risk modelling assumption (although the source of the assumption could also be an assumed future repetition of an actual shock that happened in the past).


The simplest form of interest shock is a change which is:

  • Immediate; and
  • Permanent;
  • And which affects all interest rates by an equal amount.


2.

A large, usually adverse, change in market conditions.


See also

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