How to Manage Balance-Sheet Risk in Volatile Times

Markets tanking, rates rising, recession looming, Russia’s Ukraine invasion ongoing – these are, to put it mildly, volatile times. Against this backdrop, how should financial institutions manage balance-sheet risk? Strengthening their balance sheets is a good place to start. To do so, they should employ a proper mix of scenario and sensitivity analyses – but before they do that, they need to understand the difference between these tools, and when they should be deployed. For more, check out Alla Gil’s latest column in GARP, which you can read here.