TUFF RISK Approach
Interest Rate Risk Management
Tuff Risk analyzes a financial institution's balance with the primary goal of determining the precise source of interest rate risk. Once identified, the focus is quickly shifted to a) safeguarding current and future earnings, if they are at risk and then b) restructuring the balance sheet to maximize profit in today's interest rate environment.
Laissez-faire attitudes with respect to safeguarding profits and designing forward looking risk management strategies are non-acceptable to Tuff Risk clients. Those looking to merely to meet regulatory reporting requirements should definitely look to another Asset Liability Management firm.
Tuff Risk focuses on three key facets of interest rate risk management:
1) The Short-term Perspective |
Managing the risk to the financial margin over the next 12-months, given today's interest rate environment. |
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2) The Long-term Perspective |
Managing the risk to future profitability, by strategically restructuring the balance sheet to take advantage of today's economic environment. |
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3) Profit & Risk Strategies |
Both product and derivative strategies are used to safeguard and to enhance earnings. It is imperative that today's balance sheet is in concert with tomorrow's interest rate environment. |
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The tools and methodologies used by Tuff Risk in analyzing and measuring clients' interest rate risk profiles are among the most sophisticated in the world. Add experience and confidence and Tuff Risk delivers the insight that no other firm can provide.
