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Recent events, coupled with the interest rate volatility across the world have cause many a treasurer to ask: What is our current liquidity position? What are our primary and secondary sources of liquidity? What counterparty risks could affect our liquidity?
This AI-driven approach strengthens risk management by providing timely insights and informed decisions based on real-time data analysis and predictive modeling. Risk of Insufficient Liquidity The initial facet of liquidityrisk involves whether businesses possess sufficient cash reserves to meet their financial obligations.
Riskmitigation isn’t a new concept, Simkins noted, but today’s organizations are often unfamiliar with the correct strategies they need to deploy when mitigating third-party cyber risk. “They manage credit risk and liquidityrisk, and more traditional third-party risk verticals,” he said.
But Big Data lands new capabilities in the hands of corporate treasurers and other executives that yields active, real-time assessments of risks from multiple angles, from counterparties to compliance. For fund investors, active risk management is of particular importance for treasurers, Hazeltree noted.
Banks could take measures to relieve pressure on profits by reducing costs or boosting fee income, but the report noted that it “may be challenging to fully mitigate profitability pressures.”. Also, some banks sought to raise the maturity risk of their loans to raise yields.
Disruptive technology risk ranked fourth among global executives. Around 35 per cent of UK executives said that implementing disruptive tech has escalated the importance of financial risks (market, credit, liquidityrisks), compared to a global average of 29 per cent.
Last year , OpenLink Vice President of Commodities & Treasury Solutions Mark O’Toole spoke with FX-MM about the intersection of Big Data and treasury management, noting that managing data for real-time riskmitigation is “a bigger challenger than you would imagine.”
In a survey of treasurers across more than 200 companies in various parts of the globe, Deloitte found that the corporate treasurer continues to be positioned as a risk-management function of organizations: 97 percent said that the treasurers’ role in liquidityrisk management is important. Technology Tripping Up Treasury.
They’re also insisting that the organizations have a clear understanding of their liquidityrisk, both intraday and long-term.” “We see regulators everywhere requiring that institutions not only have the cash they need,” he said in a statement. ” “That can’t be done with spreadsheets any longer,” the executive concluded.
Real-time banking support company CustomerXPs recently made a move to help banks in the UAE maintain compliance with new liquidity regulations. While the new launch is a mouthful, Clari5 Real-Time Intraday Liquidity Monitoring Solution , it is self-explanatory.
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