imported>Doug Williamson |
imported>Doug Williamson |
| Line 1: |
Line 1: |
| Liquidity risk has a number of important dimensions for the corporate treasurer.
| | The currency of Turkey. |
|
| |
|
| These include the corporate organisation as a whole, individual investments, and the wider markets for borrowing and lending.
| | Its ISO code is TRY. |
|
| |
|
| #For an organisation, liquidity risk is the risk that the organisation ceases to have access to the cash it needs in order to meet its financial obligations as they fall due. This can arise from a number of different causes, both internal and external to the organisation.
| |
| #For an individual investment, liquidity risk is the risk that the investment cannot be turned into cash quickly and without significant loss in value.
| |
| #Liquidity risk at the market level includes the drying up of borrowing markets, disrupting the financing of individual organisations.
| |
|
| |
|
| | Lira is also the Arabic name for the currencies of Lebanon (LBP) and Syria (SYP). |
|
| |
|
| The overall aim of liquidity management is to ensure that the company can meet its payment obligations as they fall due.
| |
|
| |
|
| Consequently, in its broadest terms, liquidity risk includes all the risks that adversely affect liquidity management, i.e. that impact the organisation's ability to pay.
| | ''Lira'' derives from the Latin word ''libra'', meaning a pound weight, when currency was valued in silver. |
|
| |
|
| When managing liquidity a treasurer needs to consider the wider environmental aspects such as the riskiness of the sector or industry, market and economic issues, as well as the more direct aspects of delivering liquidity to the business.
| |
|
| |
|
| | ==See also== |
| | * [[ISO currency codes]] |
| | * [[LBP]] |
| | * [[Livre]] |
| | * [[Pound]] |
| | * [[SYP]] |
| | * [[Turkey]] |
|
| |
|
| For this reason liquidity risk is integrated with business strategy and the fortunes of the business itself, and treasurers need to understand the business model of their organisations to properly manage liquidity risk.
| | [[Category:The_business_context]] |
| | |
| | |
| == See also ==
| |
| * [[Cash]]
| |
| * [[Documentation risk]]
| |
| * [[Funding liquidity risk]]
| |
| * [[Liquidity]]
| |
| * [[Market liquidity risk]]
| |
| * [[Guide to risk management]]
| |
| | |
| | |
| ===Other links===
| |
| [http://www.treasurers.org/node/5644 Liquidity risk management, Will Spinney, ACT 2010]
| |
| | |
| [[Category:Manage_risks]]
| |
| [[Category:Risk_frameworks]]
| |
| [[Category:Liquidity_management]] | |
