LIQUIDITY RISK MANAGEMENT
Our primary objective will be to review the overall liquidity risk management process and measure it against guidelines in the "Joint Agency" identified critical elements of a sound liquidity risk management process, as well as, those specified in applicable regulatory handbooks (Example: OCC Handbook of 2012 (Comptroller's Handbook: Safety & Soundness-(L) Liquidity). We will:
Review for appropriate corporate governance and active involvement by management.
Review for appropriate strategies, policies, procedures, and limits used to manage and control liquidity risk, even in stressed conditions.
Review for appropriate liquidity risk measurement and monitoring systems.
Review for active management of intraday liquidity and collateral.
Determine an appropriately diverse mix of existing and potential future funding sources are maintained.
Determine adequate levels of highly liquid marketable securities that can be used to meet liquidity needs in stressful situations without legal, regulatory, or operational impediments.
Review the comprehensiveness of contingency funding plans (CFP) sufficient to address potential adverse liquidity events and emergency cash flow needs.
Review for adequate internal controls surrounding all aspects of liquidity risk management.
