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Risk Mitigation Accounting: A New Portfolio-Based Model Under Consultation Concept And Architecture Of The Rma Model

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  • Pierre-Emmanuel Thérond

    (LSAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, Institut de Science Financières et d'Assurance, UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, Thesseract)

  • Pierre Boutonnet

    (Thesseract)

Abstract

In late 2025, the IASB published an Exposure Draft proposing a new Risk Mitigation Accounting (RMA) model aimed at better reflecting how financial institutions manage interest rate repricing risk on a portfolio basis. The model seeks to reduce accounting volatility arising from measurement asymmetries between derivatives measured at fair value and instruments measured at amortised cost. It introduces a portfolio-based framework built around net repricing risk exposure and the recognition of a risk mitigation adjustment in the balance sheet. The article explains the architecture of the model and discusses its potential implications for insurers, particularly in the context of IFRS 17.

Suggested Citation

  • Pierre-Emmanuel Thérond & Pierre Boutonnet, 2026. "Risk Mitigation Accounting: A New Portfolio-Based Model Under Consultation Concept And Architecture Of The Rma Model," Post-Print hal-05546812, HAL.
    • Handle: RePEc:hal:journl:hal-05546812
    Note: View the original document on HAL open archive server: https://hal.science/hal-05546812v1
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