Eureka!!!!!

Went to work today with absolutely no intentions of accomplishing anything. But as I got there I realized that 1) I better get started on something important and 2) I just found out something that a lot of people don't understand.
So I started working on the market risk policy and simultaneously developing a spreadsheet based model of interest rate risk with scenario analysis. Turns out, interest rate risk is the most widely misunderstood thing. A balance sheet is one large swap book where banks borrow in one maturity band and lend in another. So the calculation of interest rate risk is nothing more than the revaluation of a basis swap with different levels of interest rates.
The primary inputs to this model would be the coupons on each asset/liability, the maturity/repricing date and the current levels of KIBOR for each maturity band.