Liquidity Risk Management for Investment firms
Liquidity Risk Management for Investment firms
Effective liquidity risk management has never been more critical for investment firms. Following the FCA’s March 2025 multi-firm review, it is clear that regulators expect firms to demonstrate stronger, more proportionate controls—grounded in established liquidity risk management principles and the enhanced requirements of the ICARA process.
A robust framework for managing liquidity risk supports stronger financial resilience, reduces regulatory risk and could avoid costly remediation efforts. Our new thought-leadership paper examines the baseline principles of liquidity risk management, outlines the FCA's latest expectations, and provides practical insights into how firms can strengthen governance, risk assessments and quantification, ongoing monitoring and overall risk culture. We also share case studies that highlight good and poor practices.
For firms seeking to stay ahead of regulatory scrutiny—and avoid the costly impacts of getting liquidity risk management wrong—this paper offers clear guidance and actionable steps.
Our specialist teams provide mock s166, advice, training and other assurance services to clients in relation to their liquidity and wider prudential risk management frameworks, helping your firm effectively manage your liquidity requirements. If you would have any questions about any of the areas detailed in the paper and/or would like to find out more about how BDO can help you, please get in touch via the form below.
