Interest-rate risk is the exposure that movements in rates create for the cost of debt, the value of assets and liabilities, and the economics of hedging. It warrants board attention because a rate cycle can quietly raise financing costs, compress asset valuations and turn previously comfortable covenants tight, all without any change in the underlying business. This report explains how rate exposure is measured across floating and fixed debt in your chosen jurisdiction and industry, the indicators that a position is becoming sensitive, the scenarios that crystallise cost or valuation shocks, the realistic impact ranges, and the hedging choices available. It also sets out when to engage treasury and financial-risk specialists, framed as research to inform hedging and refinancing decisions rather than as advice on any individual instrument.
Reference material for informed readers, not advice.
