Search: "business model"

Interest Rate Risk Policy Limits: One Big Misconception

We often see interest rate risk policy limits that rely too much on net interest income (NII) volatility and miss the absolute bottom-line exposure. Such reliance can cause boards and managements to unintentionally take on more risk than they intended. Why? Because these types of policy limits ignore strategy levers below the margin. Establishing risk […]

Is Your Battlefield Changing Like Blockbuster’s Changed?

In 2004, with $5.9 billion in revenue and 9,000 stores, Blockbuster enjoyed a dominant position in its market.  In the evenings and on weekends, their stores were busy with people eager to review the latest titles and select their entertainment for the evening.  However, by 2013, Blockbuster was down to just 300 stores earning $120 […]

Evaluating Derivatives―Part V: Economic Value Declines Over Time

Credit unions purchase derivatives to receive value: interest rate risk protection. This blog series set out to help decision makers understand the variety of outcomes they could observe over the life of a derivative, and how those outcomes will ultimately determine the value realized. Over its life, derivative economic value is impacted by two forces: […]

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