Risk Source:
Interest rate risks often arise from financing or investment. And the fluctuation of interest rate exerts an obvious effect on the future revenue or cost. The most important factors that should be under consideration are: monetary policy, political impact, financing and investment structures.

Risk Management:
Once the clients recognize the interest rate risk exposure, they have three strategies:
1. Do nothing.
2. Lock into fixed rates For example, change from fixed interest rate to floating rate to avoid the rate’s continuous hike.
3. Use flexible products.