In March 2024, ISDA carried out a survey of its members to understand their views on the current stage of development of the dynamic risk management (DRM) model. Many of the largest banks that currently report under International Financial Reporting Standards (IFRS) were invited to participate.

The results show a concentration of respondents in Europe, consistent with the widespread use of macro hedging approaches in the region. Entities that are heavy users of macro hedging approaches in International Accounting Standard 39 and IFRS 9 showed greater familiarity with the potential consequences of the model in its current form.

The survey also revealed that a material number of entities are still developing their thinking and are therefore moderately familiar with such consequences, which are expected to evolve towards a greater level of familiarity as the development of the model progresses.

Treasury and accounting policy functions are the key stakeholders engaged in assessing the model. Some entities have also engaged risk managers. This is an area that is expected to evolve as the development of the model moves towards finalization.

Click on the PDF below to access the survey results.