Capital One 2014 Annual Report Download - page 133

Limitations of Market Risk Measures
The interest rate risk models that we use in deriving these measures incorporate contractual information, internally-
developed assumptions and proprietary modeling methodologies, which project borrower and depositor behavior
patterns in certain interest rate environments. Other market inputs, such as interest rates, market prices and interest
rate volatility, are also critical components of our interest rate risk measures. We regularly evaluate, update and
enhance these assumptions, models and analytical tools as we believe appropriate to reflect our best assessment of
the market environment and the expected behavior patterns of our existing assets and liabilities.
There are inherent limitations in any methodology used to estimate the exposure to changes in market interest rates.
The above sensitivity analysis contemplates only certain movements in interest rates and is performed at a particular
point in time based on the existing balance sheet and, in some cases, expected future business growth and funding
mix assumptions. The strategic actions that management may take to manage our balance sheet may differ
significantly from our projections, which could cause our actual earnings and economic value of equity sensitivities
to differ substantially from the above sensitivity analysis.
111 Capital One Financial Corporation (COF)