In my department we calculate a risk metric

**R**and the process is the following:

- We divide the company portfolio into maturity buckets
- We calculate the Gap (asset-liab) for each bucket
- We multiply each GaP for the RISKFACTOR

- We sum the results for each bucket and that’s our
**R**calculation.

To calculate the RISK FACTOR we are using an annualized Zero rate but a

**volatility (s), is this making any sense?? Shouldn’t be annualized the volatility?**

__daily__any help?