Market risk management is becoming complex discipline over the years, with increased focus on internal risk standards, evolving market conditions and significantly increased regulatory requirements. Volatility of instruments traded in market as well as market interest rates may result in multiple risks to banks and financial institutions as market participants. This increases the importance of effective management of market and interest rate risk.
Liquidity Risk is pervasive in financial markets ranging from simple treasury funding risks to asset and liability management. Banks and financial institutions are critically dependent on liquidity and its risks.
Risk Management Guidelines for Banks and Financial Institutions 2018 issued by Nepal Rastra Bank requires every bank and financial institution to objectively identify, measure, monitor, mitigate and report these risks. Due to complexity of these risks, effective tools such as Earnings-at-Risk, Duration Model, Economic Value of Equity, Market Value-at-Risk, etc. for effective risk management. The program aims to impart conceptual knowledge and application of practical approaches on various tools applied in management of Market, Interest Rate and Liquidity Risk.
