Cecilia Pop


CHOICES IN INTEREST RATE RISK MANAGEMENT PROCESS

Cecilia Pop, Roxana Calistru

Abstract
The purpose of this paper is to highlight the presence of interest rate risk at the level of non financial companies, risk which, although incidental, affects the decision process in its core; and to offer modern management solutions, in order to support the managers that underlie the investment financing decisions at the level of these companies. Methodologically, the research has been done mainly as a quantitative intercession, with estimates and tests of inductive type and appeal to adequate techniques of analysis and reading off. The results of research reveal the placing of estimation and interest rate risk management in the decision making problems of non financial company; the setting-up of interest rate risk management into a suitable algorithm developed on logical steps; the structured analysis of the derivatives for the interest rate risk management; the growth of applied component, as an actual way to estimate and test the acquired results. As a result of the research, we can draw the conclusion that the efficient management of the interest rate risk depends on the moment in which the tools we use interfere with the risk management decisions and on the way in which the management strategies answer to each managerís own decisions.

Key words: management, interest rate, risk, derivatives