Ebook Risk management of financial derivatives - Comptroller’s Handbook

This guidance is intended to provide a framework for evaluating the adequacy of risk management practices of derivative dealers and end-users. Although this guidance is comprehensive in scope, it provides only a framework. Bankers and examiners must still exercise judgment when determining whether risk management processes are appropriate. Also, while this guidance specifically addresses derivatives, many of the risk management concepts described herein can (and should) be applied to other risk-taking activities.