The subject for this session “Managing currency and interest rate risks – new challenges for banks and corporations” is very relevant in the post crisis world of elevated financial market volatility. Managing market risk has always been at the core of the risk management function of banks and, increasingly, of corporates.
As the subject of the discussion appropriately suggests, the recent global crisis has, indeed, posed “new” challenges for banks and end-users in managing currency and interest rate risks. Such new challenges have emerged due to excessive volatility both in terms of dimension and direction witnessed in almost all classes of financial assets.