Parallel risk

Interest rate risk

Parallel risk is the risk of adverse effects from a change in interest rates, which affects all interest rates by an equal amount.

This risk is relatively simpler to analyse, compared with non-parallel risk.

See also

• Back test
• Interest rate risk
• Interest Rate Risk in the Banking Book (IRRBB)
• Non-parallel risk
• Parallel shock
• Shock
• Yield curve risk