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:
- Has the framework Citigroup uses for measuring Price Risk changed?
- 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.
- 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.
