Liquidity & Liquidity Stress Testing Models

Bring clarity to your current liquidity position and the uncertainties that lie ahead.

Liquidity is the lifeblood of your organization, and the ability to assess potential changes to a liquidity position is critical even in stable economic times. Validating liquidity stress testing models enables institutions to evaluate their ability to withstand varying degrees of economic, financial, operational, environmental, or systemic stress. DCG's liquidity risk management experts will help ensure that your liquidity risk modeling meaningfully captures your institution's vulnerabilities and successfully contributes to your contingency planning and execution.

How We Help Clients

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Forecasting

DCG clients gain a thorough understanding of liquidity needs and risks from a team at the front lines of how liquidity impacts all key decisions. To ensure the proper framework is in place requires not just an understanding of regulatory requirements but also the steps high-performing organizations take to succeed.

Stress Testing

What could happen? What constitutes a reasonable stress scenario? How do you model the unexpected? Clients working with DCG's team of validation experts benefit from decades of experience in liquidity risk management to enhance their stress testing process.

Liquidity Reporting & Contingency Planning

Liquidity is constantly in a state of flux, yet is always top of mind for regulators. It remains critically important for institutions of all sizes and complexities to maintain a strong liquidity reporting and contingency planning process to be aware of their liquidity availability, needs, and potential impact of unexpected events. Liquidity Reviews provide an overview of the entire liquidity management process, conducted by a DCG team well versed in the critical aspects of optimal liquidity management.

Liquidity Stress Testing Models

Liquidity is the lifeblood of your organization – it has never been more important to have a way to effectively manage your near- and longer-term needs but also maintain a dependable process to gauge potential impacts on levels due to unforeseen events.

“Ultimately it comes down to the confidence you have in the information coming from your models – that's what a good validation will provide to you.”

Mark Haberland

Managing Director

Managing Liquidity Risk in a Volatile Market

Now more than ever, institutions are dealing with uncertainty, both in the markets and economic environment overall. Navigating the changing liquidity landscape is a challenge – from trying to determine the stability of funds to assessing the need to access alternative funding sources. How are you ensuring that your model is operating and producing output that is reasonable and reliable?

Managing Liquidity Risk in a Volatile Market

Click to hear more from the DCG liquidity risk management team about the pitfalls of homegrown models, major liquidity risk management considerations, and the importance of regular validation to ensure with confidence that your model is working how you intend.

Video: 2 minutes

Examples of Client Results

Helped strengthen Contingency Funding Plan to include documentation on potential remediation plans for liquidity stress testing.
Helped $2B bank work through MRA focused on liquidity management. Validation identified deficiencies in liquidity forecasting and stress testing; through customized education with management, helped to implement improved process and better understand importance of forward-looking liquidity analysis.