Topping the agenda

Liquidity risk

In the space of a year, liquidity has jumped to the top of the risk management agenda. In May, PricewaterhouseCoopers and the Centre for the Study of Financial Innovation jointly published their annual Banana Skins survey, ranking the 30 main risks affecting the banking sector. The poll, drawn from the responses of 300 senior managers at financial institutions in 38 countries, ranked liquidity as the number-one risk facing the industry. By way of contrast, liquidity did not make the top 30 r