Interest rate parity and Internal control: Difference between pages

Revision as of 16:31, 30 May 2016

Part of an internal system to reduce operational risk.
For example, segregation of duties.

@@ Line 1: / Line 1: @@
-(IRP).
+Part of an internal system to reduce operational risk.<br />
+For example, segregation of duties.<br />
-This theory describes the expected relationship between [[Spot rate|spot]] and [[Forward foreign exchange rate|forward foreign exchange rates]], and the [[Interest rate|interest rates]] in the related currency pair.
-Under efficient market conditions the interest rate parity theory predicts that the forward FX rate (available in the market today) should be equal to the spot FX rate, adjusted for the difference in interest rates between the currency pair over the relevant period.
+== See also ==
+*[[Access control]]
-IRP holds very strongly for actively traded currency pairs; less so for currencies which are not so actively traded.
+*[[Application controls]]
+*[[Controls]]
+*[[Operational risk]]
-== See also ==
+*[[Personnel control]]
-* [[CertFMM]]
+*[[Physical access control]]
-* [[Covered interest arbitrage]]
+*[[Physical control]]
-* [[Efficient market hypothesis]]
+*[[Reduce]]
-* [[Foreign exchange]]
+*[[Segregation of duties]]
-* [[Forward forward rate]]
+*[[Stop-loss limit]]
-* [[Four way equivalence model]]
+*[[System and network controls]]
-* [[Interest rate]]
+* [[Developments in corporate and market regulation: implications for the treasurer]]
-* [[No arbitrage conditions]]
-* [[Spot rate]]
 [[Category:Manage_risks]]