Liquidity Risk ManagementElevate the Focus of Liquidity Risk Management from Compliance to Performance
The constant issuance of new regulations is a challenge, but compliance alone doesn’t constitute a profitable business: It takes an optimized business model, within regulatory restraints, that factors in newly introduced regulatory ratios. With the Liquidity Risk Management solution, take liquidity risk management beyond compliance and redirect your focus to performance.
- Integrate upcoming regulatory changes into balance sheet planning, setting the stage for profitability within constraints.
- Analyze potential risk scenarios, factoring in the new liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR).
- Ensure consistent risk data and models to simulate the impact of the strategy on future income and compliance.
- Make the LCR and NSFR an integral part of the steering framework to set the right incentives and put the strategy into practice.
- Use a variety of forward-looking scenarios and stress scenarios to gain a clear view of your liquidity under different conditions.
- Determine the appropriate liquidity buffer with greater accuracy based on your contingent liquidity needs and regulatory requirements.