1.Larger or more complex banks must have an ALCO or other designated committee, which addresses IRRBB. The control functions carried out by the ALCO or other designated committee, such as administering the risk limits are part of the overall risk management and internal control system.
2.The personnel charged with measuring, monitoring and controlling interest rate risk must have a well-founded understanding of all types of interest rate risk faced throughout the Bank.
3.The goal of a Bank’s interest rate risk management must be to maintain a Bank’s interest rate risk exposure within self-imposed parameters over a range of possible changes in interest rates. The limits must be appropriate to the size, complexity and capital adequacy of the Bank, as well as its ability to measure and manage its risk.