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Dictionary by pitch.dog
Enterprise risk & controls · Core

Liquidity risk

Also called: funding liquidity risk

ELI5

Risk that an organisation cannot meet obligations when due without unacceptable cost.

Used in conversation

“Counsel wants liquidity risk clarified before anyone signs.”

Pitch context

You will see “Liquidity risk” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

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Sources & evidence · 3

Direct term-level sources and supporting source families.