CU2307. Timeless Principles for Navigating Risk in Dynamic Markets

A historic Fed tightening cycle contributed to multiple bank failures in 2023 and shined a light on poor risk management practices. With significant rate movements happening in a short period of time, depositories everywhere have experienced shifts in their interest rate risk exposure and balance sheet dynamics. In this session, we will review recent events and focus on timeless balance sheet management fundamentals, including understanding hedging and funding strategies.

Learning Objectives:

• Identify key risk management practices for financial institutions
• Indicate hedging strategies for risk management
• Estimate hedging strategies for risk management