Objectives On completion of this tutorial, you will be able to:

• Recognize the impact of a bank's business strategy and risk appetite on its exposure to market risk
• Identify the various strategies that banks can adopt to manage market risk
• Recognize the limitations to market risk management, including those risks that are difficult to measure and manage
• Identify the key regulatory requirements for market risk
• Recall the role of backtesting, PLA tests, and stress testing in managing market risk

Tutorial Overview This tutorial looks at the strategies that banks can use to manage market risk and the limitations associated with market risk management. The tutorial also examines how regulators are continuously attempting to ensure that banks hold sufficient capital to cover market risk. Prerequisite Knowledge Market Risk - Measurement Tutorial Level: Intermediate Tutorial Duration: 45 minutes