gtnews

Liquidity Risk Articles

• EuroFinance2012: Q&A with Daniela Sibille, Director, Corporate Treasury EMEA, SunGard
  Daniela Sibille, SunGard Inc - 13 Nov 2012 Cash and risk management were the hot topics at this year’s EuroFinance event, according to Daniela Sibille, director, corporate treasury Europe, Middle East and Africa (EMEA), SunGard. The eurozone crisis still looms large and contingency planning is the order of the day.
• Simplifying Payments for Enhanced Risk Management
  Colin Kerr, Microsoft - 30 Oct 2012 Operational efficiency should be viewed as more than a cost savings exercise. Reducing costs is always popular, but it’s only part of the story. Treasurers also should look at the broader opportunities that come with transaction streamlining, particularly in regard to improved oversight and risk reporting using collaboartive platforms such as SWIFT and real-time analytics.
• A Strategic Agenda for Corporate Treasury
  Bas Rebel, PwC - Sebastian di Paola, PwC - 28 Aug 2012 Coping with crisis is challenging but can be a positive force in driving through needed efficiencies in treasury operations. This article considers improvements in the three key areas of corporate cash culture, corporate risk culture and corporate compliance culture.
• Expanding the Strategic Role of Treasury
  Diane Reyes, HSBC Global Payments and Cash Management - 28 Aug 2012 This article looks at how the last five years have driven a change in the role of treasury, making it a core strategic function for the growing business.
• The Mining Sector: Industry Challenges Facing Treasurers
  Blaik Wilson, Reval - 17 Jul 2012 In recent years Asia’s economic growth has fuelled demand and prices for mining products with gold, copper and  silver topping the charts, creating record profits. Despite this, life is not always easy for treasurers working in the mining industry, who face challenges not seen in other sectors. This article considers some of these unique challenges, and how technology is being used to help manage and overcome them.
• People, Partners and Processes: Three Must-haves When Aiming for Best Practice
  John Salter, Lloyds Bank Wholesale Banking & Markets - 8 May 2012 What are top tips for corporate treasuries to improve their cash management techniques? What is considered to be best practice?
• Navigating Stormy Waters: Why Cash Management, Forecasting and Liquidity Management are Converging
  Andrew Reid, Deutsche Bank - 30 Apr 2012 A 'perfect storm' is brewing in Europe: the downturn, allied to the on-going eurozone crisis, is creating tight credit conditions for smaller businesses, while larger corporations are seeking short-term investments for their large cash reserves, simultaneously ensuring they remain liquid in the face of the tough times ahead. Regulatory and market burdens, with banks having to save much more money against their balance sheets, are just adding to the very tough cash and liquidity management environment for corporate treasurers.
• Why Cash is King at the Moment
  David Manson, Barclays - 24 Apr 2012 Huge reserves of cash have been built up by large UK and multinational firms which want to keep it on call during economically uncertain times. The reasons for the reserves are not going away, fuelling treasury demands for ever better oversight of cash, so it can be concentrated and tracked for liquidity management purposes. Finding short-term places to invest is a key requirement for the modern treasurer too.
• Ensuring Liquidity and Working Capital Resilience
  Michiel Ranke, RBS Global Transaction Services - 20 Apr 2012 Research from RBS and Greenwich Associates shows companies are above all looking to preserve liquidity and manage risk when it comes to their working capital. But seeking working capital resilience does not need to be at the expense of treasury efficiency.
• Improve Cash Flow Forecasting and Liquidity Management
  Lisa Rossi, Deutsche Bank - 17 Apr 2012 Accurate cash flow forecasting depends on the provision of precise and relevant data. It is therefore imperative that corporates optimise data collation and management practices. In doing so, companies can not only improve their forecasting capabilities, but can also optimise overall liquidity management.
• Netting: The Key to Stronger Liquidity Management
  Steve Everett, RBS Global Transaction Services - 17 Apr 2012 Global companies face global risks. In the current economic environment, the management of those risks is even more important. As a result, it's essential for companies to minimise their costs and optimise their working capital.
• Embedding the Culture of Comprehensive Liquidity Risk Management
  Bharat Rathod, Polaris Financial Technology - 3 Apr 2012 Given today's stringent regulations, which are getting tougher day-by-day, liquidity risk is clearly an area that will be given a lot of attention by banks.
• History Repeating: Treasury Best Practice Lessons Learned from 2008
  Monie Lindsey, Treasury Strategies - 10 Jan 2012 While the 2008 crisis and its aftermath caused treasurers to re-evaluate every aspect of their role, specific lessons learned have positioned corporates to weather the new reality of uncertainty, volatility and a steady diet of economic, political and environmental crises.
• A Holistic Approach to Liquidity
  Richard Helliar, Cordys - 3 Jan 2012 A real-time view of data gives organisations the ability to make the right decisions through an automated process, which improves enterprise liquidity by mitigating risk.
• Revisiting Global Liquidity Management Strategies: Now is the Time
  Amy Goldstein, JP Morgan Chase - 2 Dec 2011 Enhancing or creating a liquidity strategy is a lengthy process, with a variety of tax and legal implications. For that reason, it's important to get started as soon as possible so you're ready to effectively deal with market uncertainties and take advantage of opportunities as they arise.
• Taking Liquidity Risk Management to the Next Level
  Jason Torgler, Reval - 11 Oct 2011 Best practice organisations proactively manage their levels of cash and access to credit with a rigorous approach to tracking and managing liquidity risk. By establishing the structures necessary to improve visibility and make informed decisions, companies can avoid flying blind through the winds of change, taking their practice of liquidity risk management to the next level.
• Liquidity Risk Management and the Changing Risk Landscape
  Stuart Owers, Aerice - Dev Sharma, Aerice - 10 Oct 2011 With continuing market volatility and the associated reductions in available funding, risk managers have to stay firmly on top of their liquidity requirements. Careful system selection that delivers the appropriate reporting tools is an essential component in a successful liquidity risk management strategy - without this in place, there is a very danger of getting caught without the appropriate cash flow required for efficient operation.
• Practices and Emerging Trends in Asset Liability Management and Liquidity Risk
  S Ramakrishnan, Oracle Financial Services Software - 6 Oct 2011 More than ever the constituents in financial institutions are increasingly aware of the risk weighting of assets and capital requirements for incremental business, and they recognise that it pays to focus on maximising profitability while optimising capital requirements.
• Counterparty Risk Management and OTC Derivatives
  Anshuman Jaswal, Celent - 8 Aug 2011 This article mainly looks at counterparty risk in the context of over-the-counter (OTC) derivatives, as this is an area that not only involves high levels of risk for the market participants, but also has been under the regulatory purview of leading regulators globally.
• The Middle East: Managing Corporate Risk in a Crisis
  Steve Donovan, Citi - Sanjay Sethi, Citi - Farouk Soussa, Citi - 4 Aug 2011 To be successful in a crisis, a bank must open up as many communication channels as possible, in order to get a true picture of a corporate client's requirements.
• Challenges with International Cash Pooling
  Paul van Sint Fiet, Capgemini - 1 Jun 2011 The role of the corporate cash manager has been continuously revised over the past few years, as a result of the demand for more effective and efficient ways to support the core needs of the organisation. This has resulted in new responsibilities for the corporate treasurer and cash manager.
• The Challenges of Real-time Intraday Liquidity Risk Management
  Xavier Bellouard, Quartet FS - Martin Coen, Dovetail Systems - 26 Oct 2010 There are a number of benefits and challenges associated with intraday liquidity risk management. This article explains why timely and accurate information is key in this process, and considers the notion of introducing a pricing model for corporates.
• Managing Liquidity Risk Down to Intraday Transactions
  Suresh Sankaran, Fiserv - 26 Oct 2010 Financial institutions are under greater pressure to manage a variety of risk areas, particularly liquidity. They need to seek and leverage multiple risk management perspectives for better self-regulation and real-time management of all sources of intraday funding and the entire spectrum of liquid assets.
• Intra-day Liquidity, Banking and the State
  Adam Lawson, Beltane Ventures - 10 Aug 2010 This article draws attention to the symbiosis that exists between banks and between banks and the state (in relation to the UK and applicable to countries across the world) and its impact on the 2007-9 financial crisis that has left such a damning legacy.
• The Centre Holds
  Petr Polak, VSB-Technical University of Ostrava - 22 Jun 2010 This article examines the journey from decentralised treasury towards fully centralised cash and treasury management.
• Liquidity Risk Management: Making Pragmatic Improvements
  Wim Raymaekers, SWIFT - 1 Jun 2010 What practical steps can financial institutions take to gain control over their liquidity risk management? This article looks at the options and shares highlights of the recent liquidity risk survey carried out by SWIFT and gtnews.
• An Evening with gtnews: Cascading Risk
  1 Jun 2010 The financial crisis has seen risk management rise to the top of the agenda for corporates and banks alike. But in an environment where many previously trusted models have proved ineffectual, what steps can institutions take to protect themselves?
• Liquidity: When the Well Runs Dry
  Martin Wong, KPMG - 4 May 2010 The tight liquidity market caused by the credit crisis compelled many companies to re-examine their liquidity risk management practices. How can these be adjusted to be as effective as possible?
• Cashing in on Cash Management
  Les Gosling, TwoFour - 20 Apr 2010 The impending liquidity regulations demand greater transparency and reporting. This, combined with the need to more fully optimise available funds, has led to an increased focus on risk across the inter-bank market. This article examines how banks can best meet their obligations and the benefits that can be gleaned from effective management of nostro accounts.
• Focus on Liquidity Management: Maximising Growth Opportunities
  Klaus Kremers, Roland Berger Strategy Consultants - 30 Mar 2010 The credit crisis has significantly influenced liquidity risk management. With liquidity being squeezed from many angles, with a decrease in revenues, credit lines being cut and credit becoming more expensive, there has not been such a major focus on liquidity management across the whole of the globe for many years.
• Managing Liquidity Risk in a New Regulatory Environment
  Jörg Drüen, Fernbach - 30 Mar 2010 This article examines the controls corporates and financial institutions can put in place to lower liquidity risk.
• Plugging the Gap in Liquidity Risk Management
  Winston Ngan, Ernst & Young - 16 Mar 2010 As regulatory scrutiny of the financial services industry continues, banks can continue to expect tough questions about their liquidity contingency planning and risk management policies.
• Selecting Your Liquidity Management Bank
  Enrico Camerinelli, gtnews - 2 Mar 2010 One of the frequent questions asked by the board is how treasurers evaluate the bank(s) that will best manage the company's liquidity portfolio. This article provides an overview of this practice.
• Enterprise-wide Stress Testing: A New Approach for a New Era
  S Ramakrishnan, Oracle Financial Services Software - 16 Feb 2010 Financial institutions are rethinking their entire approach to stress testing. Many are embracing a centralised or holistic approach to gain the enterprise-level insight required to effectively manage risk and mitigate threats to liquidity.
• Bank Differentiation on a Level Playing Field
  Erik Seifert, SEB - David Teare, SEB - 9 Feb 2010 This article looks at how treasurers' priorities - particularly in relation to liquidity and risk management - have changed, and what they should now be seeking from their banking partners to support these evolving requirements.
• Integrated Cash Flow Planning: Now is the Time
  Christof Paul Jordan, BearingPoint - 2 Feb 2010 Integrated cash flow planning has become increasingly important for companies because it addresses their increased need to save on investment expense and manage credit risk.
• The Regulatory Gauntlet
  Duncan Ash, SAS - 26 Jan 2010 The need to strengthen liquidity and supervision is high on regulators' list of priorities in the wake of the financial crisis. Much of the framework has now been put in place: 2010 is to be the year of implementation.
• Liquidity Management: An Introduction
  Sujata Singh, Infosys - 12 Jan 2010 Having a global liquidity management system in place offers a range of benefits to financial institutions and, in turn, their clients.
• Asian Liquidity Management: A Reality Check
  Philippe Jaccard, Citi - 12 Jan 2010 This article challenges the commonly-held perception of Asia as a location where extracting liquidity and achieving respectable risk-adjusted returns is impossible.
• Compliance: Taking on a Strategic Role
  Deborah Traversa, SIA - 8 Dec 2009 The compliance function has finally found the limelight - but it took a financial crisis to get it there. Today, compliance is viewed as a catalyst for innovation around investment services.
• The Imperative of Risk Model Validation
  Ninad Mauskar, KPMG - 1 Dec 2009 Risk models used by banks have come under fire as being a contributory factor to the credit crisis. Is this really the case? This article looks at how risk models are put together, and how banks can use them efficiently.
• FSA Policy Statement (PS) 09/16: Pricing Liquidity Risk - Mechanism to Allocate Cost or Incentivise Business Behaviour?
  Nigel Walker, avantage (UK) Limited - 1 Dec 2009 A review of the rationale for pricing liquidity risk, as well as practical implementation issues, taking into account the 'Evidential Provisions' provided in BIPRU 12.3.15.
• Technology Priorities For Corporates
  Andrew Woods, SunGard AvantGard - 20 Oct 2009 Getting the most up-to-date information on liquidity and counterparty risk have become vital for treasurers in the wake of the global financial crisis - and treasury management systems are vital tools for treasurers in this respect.
• The Evolving Role of the Treasurer and Meeting Constituent Expectations
  Amy Beninato, HSBC Global Transaction Banking - David E. Wexler, HSBC Global Transaction Banking - 29 Sep 2009 The role of the treasurer has evolved in areas such as liquidity and risk management, corporate governance and cash forecasting. How can treasurers demonstrate the value they add in these areas?
• Liquidity Risk Management and Reporting: A Call to Action
  Kim Patel, Quadrant Risk Management - 4 Aug 2009 The continuing intensity of the financial crisis has led governments and monetary authorities around the world to introduce wide-ranging and unprecedented measures to support the financial systems in their countries.
• Dealing with Liquidity Risk
  Mario Tombazzi, HSBC Global Transaction Banking - 21 Jul 2009 One of the most obvious consequences of the credit crisis has been the reduced availability of external liquidity. This article examines the lessons that have been learnt and the most effective responses.
• A New Resilience
  Gail Le Coz, Institutional Money Market Funds Association - 9 Jun 2009 This article looks at how the US and the UK have responded to the recent blows to the security and liquidity of money market funds.
• Risk Management: the Future for Treasury
  Frank Wendt, KPMG - 28 Apr 2009 Now is the time for treasury to take more of a front-line role in a company's risk management and finance management functions.
• Defining Collateral Valuation - a New Way of Thinking
  Dr Ashok Hegde, MindTree Consulting - 7 Apr 2009 Internationally, governments need to take a measured approach to help firms unwind the asset leverage and ease the liquidity situation.
• Liquidity and Risk Mitigation Issues Remain in Carbon Markets
  Graham Cox, Deutsche Bank - 24 Mar 2009 While the future for carbon trading and cap-and-trade emission reduction schemes is certainly bright, there still remain issues relating to liquidity and risk-mitigation.
• Five Emerging Trends in Risk Management
  Philippe Carrel, Thomson Reuters - 19 Mar 2009 Risk management is an area of finance under much scrutiny, following a series of high-profile failures. How is the financial crisis proving to be a force for change?
• Liquidity Risk: What's Your Exposure?
  Don DeLoach, Aleri - Tony White, Wall Street Systems, Inc. - 10 Feb 2009 Employing new technology, such as a bank-wide liquidity management system, will help banks identify and deal with poor quality assets.
• Managing Risk and Liquidity During the Credit Crunch
  Mandar Pitale, Polaris Financial Technology - 9 Dec 2008 This article provides an overview of the flaws in risk assessment systems that have surfaced during the current crisis and suggests a much-needed paradigm shift from reactive risk controls to predictive risk assessment.
• Dealing with the Financial Crisis: Enforce Risk Management
  Rosy Stuart, Oracle Financial Services Software - 28 Oct 2008 The current financial crisis has highlighted the critical importance of ensuring that a firm's senior managers have a transparent and robust oversight of capital, liquidity and risk management. This article outlines the principles that all institutions should be upholding right now.
• The Five Changing Faces of Risk Management
  Philippe Carrel, Thomson Reuters - 9 Sep 2008 In light of the current liquidity crisis, this article outlines five changes to accepted risk management practice that can help to elevate corporate risk policies into a strategic priority. These changes have been derived from the ongoing analysis of the crisis and its roots.
• Funding Liquidity Risk: Addressing the Challenges
  Robert Smith, Lepus - 9 Sep 2008 Until recently, partly due to the failure to include stipulations on liquidity risk during the conception of Basel II, liquidity has taken a back seat to market, credit and operational risk and banks have failed to fully appreciate the relationship between them.
• Achieving Harmonisation, Consolidation and Standardisation in a Volatile World
  Timothy O'Keeffe, ABN Amro - 29 Apr 2008 This article explores how the role of treasury is changing due to automation, centralisation and standardisation. What opportunities does this create and what new challenges must be overcome?
• Impact of the Credit Crunch on Liquidity Risk Management
  Adam Lawson, Beltane Ventures - 22 Apr 2008 This article examines the ramifications of the credit crunch on liquidity and liquidity risk management for financial institutions.
• From Collections to Excess Liquidity - Risk in the Supply Chain
  Arthur Payens, Rabobank - Peter Smulders, Rabobank - 1 Aug 2006 Optimising the company's working capital is every treasurer and CFO's ultimate goal, but this can only be achieved if they have a good overview of the whole supply chain and the risks associated with getting cash into the company - in other words, risk associated with collections and customer receivables.
• Liquidity Risk and Impact on Treasury
  Rajeena Brar, Lepus - 18 Apr 2005 Liquidity risk has become a much more significant component of risk management strategies mainly due to Basel II regulations relating to good practice in liquidity management. The key issue for financial institutions now is to make sure that they are fully prepared in situations where liquidity risk does become a problem.
• When Angels Lose Their Wings
  Edward Eyerman, Fitch Ratings - 10 Jan 2005 Corporate issuers that have witnessed their credit ratings fall from investment-grade to sub-investment grade face obstacles within the European legal framework. This Fitch analysis focuses on the position of bondholders as corproate stakeholders in light of market and legal frameworks in Europe that may no longer be sustainable.
• All Things Global - Are Banks Delivering on Their Global Liquidity Promises?
  St.John Potter, JP Morgan Chase - 21 Jun 2004 Global this, global that - it seems to be the most over-used adjective in the English language when banks describe their capabilities. But when it comes to being a true global liquidity provider, are the banks up to scratch? How are they going about delivering on their promises to customers? What solutions and strategies have they implemented and more importantly, do they work?
• Best Practices for Liquidity Risk Management
  Christian Kronseder, Credit Suisse - 27 Jan 2004 Banks are becoming more aware that liquidity is an increasingly scarce resource, but best practice in liquidity risk management remains under-developed. In the fourth part of his series on Liquidity at Risk, CSFB's Christian Kronseder outlines a core framework and explores the parallels with credit and market risk management.

Liquidity Risk Interviews

• Liquidity in Asia-Pacific: Is There a Crunch?
  Richard Hartung, gtnews - 20 Jun 2012

Liquidity Risk Videos

• EuroFinance 2012: Eurozone Crisis' Impact on Corporate Treasury
  Swati Mitra, Citi - William Lee, Citi - Michael Guralnick, Citi - 8 Oct 2012