2014 Liquidity Risk Survey

1 min read

Survey goal

To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices.

What we’ve learned in 2014

  • Treasury and financial professionals appear to have begun to control bank exposures
    • Decrease in bank deposits
  • Firms seem to have increased the pace at which they negotiate and renegotiate credit facilities and to have structured debt and credit facilities with multiple maturity dates
  • Short-term cash forecasts appear to have become less reliable, especially for smaller companies
  • Ongoing calibration of investment policies
    • 66% of firms have updated their investment policy within the past two years
    • More firms are setting limits for uninsured bank deposits
  • Organizations do not appear to have formal counterparty risk exposure policies or frameworks in place
    • Apparent difficulties aggregating, analyzing and monitoring counterparty exposure

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