Market Risk
Market Risk
Market risk is the risk that Gatehouse’s earnings or capital, or its ability to meet business objectives, will be adversely affected by changes in the level or volatility of market rates or prices such as profit rates, credit spreads, commodity prices, equity prices and foreign exchange rates. In order to facilitate management, control, measurement and reporting of market risk.
Gatehouse has grouped market risk into three broad categories:
Trading market risk
These risks arise in trading transactions where Gatehouse acts as principal with clients or with the market;
Asset and liability risk
These risks arise from banking activities, including those incurred on non-trading positions such as customer assets and liabilities and capital balances; and
Other market risks
Gatehouse may also incur market risks that are assessed under a slightly different framework.