Interest Rate Risk in Banking Book (IRRBB) is the possible risk to banks' books from significant interest-rate fluctuations. A bank's cash position and earnings can be jeopardised if IRRBB is high in the market. When rates are high, the present value and timing of future cash flows can take a hit. Elevated rates also weigh on banks' earnings by increasing its expenses. To forecast IRRBB for banks, indicators such as stress test and sensitivity of net interest income are looked into. Guidelines by the Bank for International Settlements recommends the governing body of a country's apex bank work on a management framework for a possible IRRBB in the banking system.