Market risk discussion

Citigroup includes a detailed discussion and analysis of Price Risk in its trading portfolios in its 10-K report.

• 10-K for 2014: http://www.citigroup.com/citi/investor/data/k14c.pdf. Primary discussion found on pages 110-114
• 10-K for 2005: http://www.citigroup.com/citi/investor/data/k05c.pdf. Primary discussion found on pages 90-91

Discuss the changes in the level of disclosure between 2005 and 2014. As part of your discussion, please address the following points:

1. Has the framework Citigroup uses for measuring Price Risk changed?
2. What additional information about their risk management approach have they disclosed in 2014 over that of 2005? Provide at least three examples that you consider significant.
3. In what ways has the lengthier discussion of 2014 added to your understanding of Citigroup’s price risk management over that of 2005?

Please note: You do not need to discuss the actual results of either year; or how the numbers changed from 2005 to 2014. Focus only on the way price risk in the trading portfolios is presented by Citigroup.      

Sample Solution