<p>Interest rate risk is way broader.</p>
<ul>
<li>you can have basis risk,</li>
<li>repricing risk,</li>
<li>prepayment risk</li>
<li>with equity and FX options you have rho and phi and might face early exercise</li>
<li>Banks need to compute several measures like IRRBB (interest rate risk in the banking book) which is computed as a repricing gap of the products</li>
<li>GAP risk between assets and liabilities (Keyword SVB collapse)</li>
<li>Value at risk)</li>
<li>...</li>
</ul>

CC BY-SA 4.0
2023-04-30T23:30:19.703Z
2023-04-30T23:30:19.703Z
AKdemy
<p>Is there a difference between interest rate risk vs duration risk? I feel as though I have heard them used interchangeably but I don't know if there is any distinguishing factor between the two.</p>

<interest-rate><risk><interest>
interest rate risk vs duration risk?
EllipticalInitial
# interest rate risk vs duration risk?

(Asked by: username_0 on 2023-04-30)

Is there a difference between interest rate risk vs duration risk? I feel as though I have heard them used interchangeably but I don't know if there is any distinguishing factor between the two.

**Tags:** interest-rate, risk, interest

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## 1 answers

### Answer by username_1 on 2023-04-30. Score: 2

Interest rate risk is way broader.

* you can have basis risk,
* repricing risk,
* prepayment risk
* with equity and FX options you have rho and phi and might face early exercise
* Banks need to compute several measures like IRRBB (interest rate risk in the banking book) which is computed as a repricing gap of the products
* GAP risk between assets and liabilities (Keyword SVB collapse)
* Value at risk)
* ...


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