The Federal Reserve is tightening money supply. It’s important to examine how rising interest rates will impact the risk profile of financial institutions. Risk managers are actively handling interest rate challenges. In the meantime, financial institutions should prepare for higher defaults. Enterprise risk management programs must prepare to identify, assess, measure, monitor, remediate, and report on risk ahead of these rising critical issues.
Risk Management Considerations in a Rising Rate Environment
September 08, 2022
The Federal Reserve is tightening money supply. There is a need to examine the rising interest rate impact on financial institutions overall risk profile. Risk managers are actively handling interest rate challenges. In the meantime, financial institutions need to be prepared for higher defaults. ERM programs need to be prepared to proactively identify, assess, measure, monitor, and remediate & report on risk before the rise of critical issues.
