The following table presents the notional amounts underlying the company’s derivative instruments by term to maturity as at  December 31, 2013 and the comparative notional amounts at December 31, 2012, for derivatives that are classified as fair value  through profit or loss, and derivatives that qualify for hedge accounting: The company is exposed to the following risks as a result of holding financial instruments: market risk (i.e., interest rate risk,  currency risk and other price risk that impact the fair value of financial instruments); credit risk; and liquidity risk. The following  is a description of these risks and how they are managed: Market risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the  company will fluctuate because of changes in market prices. Market risk includes the risk of changes in interest rates, currency  exchange rates and changes in market prices due to factors other than interest rates or currency exchange rates, such as changes  in equity prices, commodity prices or credit spreads. The company manages market risk from foreign currency assets and liabilities and the impact of changes in currency exchange  rates and interest rates, by funding assets with financial liabilities in the same currency and with similar interest rate characteristics,  and holding financial contracts such as interest rate and foreign exchange derivatives to minimize residual exposures.  Financial instruments held by the company that are subject to market risk include other financial assets, borrowings, and  derivative instruments such as interest rate, currency, equity and commodity contracts.  The observable impacts on the fair values and future cash flows of financial instruments that can be directly attributable to  interest rate risk include changes in the net income from financial instruments whose cash flows are determined with reference  to floating interest rates and changes in the value of financial instruments whose cash flows are fixed in nature. The company’s assets largely consist of long-duration interest-sensitive physical assets. Accordingly, the company’s financial  liabilities consist primarily of long-term fixed-rate debt or floating-rate debt that has been swapped with interest rate derivatives.  These financial liabilities are, with few exceptions, recorded at their amortized cost. The company also holds interest rate caps to  2013 ANNUAL REPORT 141 Interest Rate Risk a)  Market Risk 27.  MANAGEMENT OF RISKS ARISING FROM HOLDING FINANCIAL INSTRUMENTS Dec. 31, 2013 Dec. 31, 2012 (MILLIONS) < 1 year 1 to 5 years > 5 years Total Notional  Amount Total Notional  Amount Fair value through profit or loss Foreign exchange derivatives  $ 2,275 $ 721 $ — $ 2,996 $ 2,794 Interest rate derivatives Interest rate swaps  387 410 75 872 1,319 Interest rate swaptions  161 1,543 — 1,704 263 Interest rate caps  3,836 1,963 — 5,799 3,811 4,384 3,916 75 8,375 5,393 Credit default swaps  — 800 — 800 865 Equity derivatives  249 1,366 — 1,615 1,096 Commodity instruments Energy (GWh)  23,209 35,613 1,310 60,132 32,171 Natural gas (MMBtu – 000’s)  11,702 1,063 — 12,765 41,922 Elected for hedge accounting Foreign exchange derivatives  $ 5,871 $ 652 $ 1,675 $ 8,198 $ 3,365 Interest rate derivatives Interest rate swaps  2,166 4,844 1,372 8,382 11,667 Bond forwards  — — — — 471 Interest rate caps  — — — — 1,140 2,166 4,844 1,372 8,382 13,278 Equity derivatives  10 8 — 18 16 Commodity instruments Energy (GWh)  4,496 11,718 25,986 42,199 41,731