Balancing liquidity risk is no easy feat and is perhaps one of the most important goals of any business. Ensuring that you can meet your company’s short term debts while also turning a long-term profit is a task that is more than just about balancing cash assets – it’s about ensuring the health of your entire company. And, it’s perhaps one of the most difficult tasks for any company.
As such, a liquidity risk manager’s job needs to extend beyond the balance sheet to influence other parts of the business.
But we all know that it’s challenging for any organization to know the value of the assets they hold. Add to that the ever fluctuating markets and the scenario becomes increasingly complex to accurately manage.
In this solution brief “8 Steps to Managing Liquidity Risk”, Stu Blair, Senior Solutions Engineer at TIBCO Software talks about the complex challenges you face when managing your liquidity risk and give you concrete steps to successfully manage that risk.
Enabling Risk Management with a Real-time Decision Engine
To start, you need a platform that provides a real-time decision engine. This engine should be capable of continuously iterating simulations based on historical, contemporary, and predicted future parameters, preferably using digital twins. It should also be capable of arming decision-makers with the next best action for balancing short, medium, and long investment portfolios against respective liquidity requirements.Every organization in every industry needs an appropriate liquidity risk management capability to take advantage of opportunities while guarding against erratic events. Click To Tweet
Every organization in every industry needs an appropriate liquidity risk management capability to take advantage of opportunities while guarding against erratic events.