New York, NY, USA
July 15, 2008

The New Liquidity Risk Management 
Paradigm: Restructuring Foundations for
Best Practices

Table of Contents

Return to report Abstract

Executive Summary 3
Introduction 6
Understanding Liquidity Risk 8
Market Landscape 12
Fundamentals of Managing Liquidity Risk 17
Liquidity Risk Management Framework 22
Defining Liquidity Risk Tolerance 23
Measurement of Liquidity Risk 27
Monitoring the Situation 43
Planning for Liquidity Events 45
Governance Structure 50
Toward Best Practices: Action Points for Institutions 53
Conclusion 55
 

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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