Liquidity management

Course learning outcomes

After studying this course, you should be able to:

• Understand the nature of liquidity risk
• Understand methods that can be used to measure exposure to liquidity
• Review how organisations manage their exposure to liquidity risk
• Appreciate how liquidity risk can be managed through the effective structuring of assets (particularly liquid assets) and liabilities (particularly debt liabilities)
• Understand methods employed by banks and other financial institutions to manage their liquidity.