PIB 9.2.2 Guidance
1. Senior management and the
Governing Body of an Authorised Firm are expected to demonstrate a thorough understanding of the links between funding liquidity risk and market liquidity risk, as well as how other risks, including credit, market, operational and reputation risks, affect the Authorised Firm's overall Liquidity Risk policy.
2. Senior management should ensure that all business units with activities that have an impact on
Liquidity Risk are aware of the Liquidity Risk policy and limits.
3. Senior management should ensure that the
Liquidity Risk policy outlines clearly the structure, responsibilities and controls for managing Liquidity Risk in and across different jurisdictions, legal entities and branches. They should also ensure that the structure, responsibilities and controls take into account legal, operational, regulatory, reputational and other constraints on liquidity transfer.