About Interest Rate Risk in the Banking Book (IRRBB) Pathway

Navigating and managing market risk is one of the most complex areas of banking. Within a bank’s banking book, market risk can come in many forms, but the most prevalent is interest rate risk, or IRRBB. In this pathway, Financial Markets expert Paul Newson, will guide you through the various aspects of IRRBB. Paul will outline what IRRBB is, before going on to explain how to measure and control it through the likes of Net Interest Income (NII) sensitivity, and Economic Value of Equity (EVE) sensitivity. Later videos will then outline why IRRBB measurement and control is more of an art than science, before finishing with how market risk in banks is reported, both internally and externally. By the end of the pathway, you will have a thorough understanding of IRRBB and will be equipped with the knowledge you need to mitigate and manage the risks associated with it.

In this pathway

Pathway experts

Paul Newson

20 years: Market Risk

Paul Newson has been working in financial regulation and risk management for over 20 years, and has taught IRRBB courses for ALMA for the last six years.