Liquidity Risk Management and Compliance

Our liquidity risk management and compliance solution supports institutional resilience, facilitates regulatory compliance and is a source of return enhancement.

The market turmoil that began in 2008 illustrated that global liquidity risk management practices were wholly inadequate. The key challenge facing the liquidity risk management professional today is putting in place the necessary governance, procedures and risk management platform necessary to quantify the structural liquidity risk of the balance sheet. Firms with prospective liquidity risk metrics are more likely to make better tactical and strategic funding decisions, comply with regulatory requirements and incent prudent retail pricing decisions. According to Observations on Risk Management Practice During the Recent Marketing Turbulence, published by the Senior Supervisors Group, firms that had detailed enterprise liquidity governance, disciplined valuation practices, treasury risk management functions that were aligned with business lines in global liquidity planning, and responsive and versatile risk monitoring and reporting platforms performed better through the crisis.