ONLINE ASSESSMENT OF INTEREST RATE RISK

In addition to being of great importance to bank managers (due to the particular significance of Interest Rate to banking institutions: its fluctuation is, at the same time, a premise for success AND potentially fatal in case of inadequate management), Interest Rate Risk is of concern to any individual who possesses a financial portfolio (made up of loans, deposits, various investments, etc.), as any such portfolio may be endangered when exposed to fickle Interest Rates. Members of this latter category, however, are grossly neglected when it comes to availability of both information about and affordable or, better yet, free methods of protection against Interest Rate Risk. Approaches to Interest-Rate-Risk assessment, from the traditional, timehonored methods (maturity and repricing schedules) to the more complex and experimental ones, are at least partially suited for software implementation. Using the Internet as medium, fairly simple, yet effective methods of Interest-Rate-Risk assessment can be made available to a vast audience, including current and potential bank employees involved in risk management, individuals whose interest in the matter is academic or, quite simply, members of the general public aware of the implications of Interest-Rate variation upon their financial investments.