Sound Practices for Liquidity Risk Management

• Jul 9, 2019
• By Tyler Dunn

With additional rate hikes on the way from the Fed, examiners’ focus on Liquidity Risk Management (LRM) has increased meaningfully in recent quarters. The Financial Crisis laid bare risk management practices that many regulators deemed insufficient to withstand the strain imposed by tighter credit conditions and reduced access to funding, particularly in the wholesale market. Adequately responding to regulators’ comments and requirements will require risk managers to maintain a firm understanding of not only the regulatory principles related to policies and procedures, but also of the methodology and procedures for