An institution could consider restructuring the duration of its investment portfolio, selling loans to other investors, or initiating a campaign to attract deposits with a repricing structure closer to the loan product - all of which could reduce the interest rate risk.
Institutions are also finding that technology and business process changes are a growing source of risk exposures - what we call operational risk. Operational risk data, which support the Basel II capital initiative, show that the second most prominent cause of losses are due to breakdowns in execution, delivery, and process management.