Barclay Simpson specialises in the provision of liquidity risk job opportunities. We have a team of specialist consultants dedicated to securing the best liquidity risk jobs and career opportunities across the banking, insurance, asset management and professional service sectors in London and across the whole of the UK, Europe and the Middle East.
Liquidity risk jobs involve assessing and managing risks associated with an organisation’s ability to meet its short-term financial obligations. Liquidity risk professionals monitor cash flows, analyse funding sources, and develop strategies to maintain sufficient liquidity. They assess potential liquidity stress scenarios, implement liquidity risk management frameworks, and establish contingency plans to mitigate liquidity risks. Liquidity risk jobs play a critical role in ensuring the organisation can meet its financial obligations in a timely manner.
Review our current liquidity risk jobs below or contact a consultant to discuss your liquidity risk career options.
Liquidity Risk Manager
- Location: Doha
- Salary: £80,000 - £110,000
- Job type: Permanent
- Sector: Banking, Asset Management & Funds
I am working with a large Asset Manager based in Qatar on a new vacancy in their Liquidity Risk t...
View job & apply
Market Risk Specialist
- Location: Dubai
- Salary: £80,000 to £110,000
- Job type: Permanent
- Sector: Banking, Financial Services, Professional Services
I am supporting an International boutique Consultancy firm with their search for a Market Risk Sp...
View job & apply
Prudential Risk Manager
- Location: Dubai
- Salary: £140,000
- Job type: Permanent
- Sector: Financial Services, Banking
A well established and successful regional commercial bank is developing its Prudential Risk Mana...
View job & apply
Risk Advisory – Balance Sheet Manager
- Location: Dubai
- Salary: Up to AED 50,000pm
- Job type: Permanent
- Sector: Professional Services
I am working with an international Boutique Consultancy looking to expand their operations in the...
View job & apply
Prudential Risk Manager
- Location: London
- Salary: £80,000 Base
Our client, a UK insurance and asset management company, is currently seeking a dynamic and skill...
View job & apply
Liquidity Risk Manager
- Location: Doha
- Salary: £80,000 - £110,000
- Job type: Permanent
- Sector: Asset Management & Funds
I am working with a large Asset Manager based in Qatar on a new vacancy in their Liquidity Risk t...
View job & apply
Financial Risk Associate
- Location: London
- Salary: Up to £65,000
- Job type: Permanent
This role presents an exciting opportunity to work in a challenging and rewarding environment, wh...
View job & apply
Liquidity Stress Testing Manager
- Location: London
- Salary: Up to £95,000 + Bonus
- Job type: Permanent
- Sector: Banking, Financial Services
An excellent opportunity has arisen for a Liquidity Risk Stress Testing Manager to join a leading...
View job & apply
- Location: Saudi Arabia
- Salary: £90,000 - £120,000
- Job type: Permanent
- Sector: Banking, Commerce and Industry
I am working with a Commodities Trading client of ours based in the Kingdom of Saudi Arabia on th...
View job & apply
Head of Treasury Risk & ALM
- Location: London
- Salary: £100,000 - £130,000
- Job type: Permanent
- Sector: Financial Services
Our client, a fintech brokerage, seeks an experienced individual for an advisory role focused on ...
View job & apply
Systemic Risk Manager
- Location: London
- Salary: £80,000 + Bonus
- Job type: Permanent
- Sector: Financial Services
A fantastic opportunity has arisen for a Systemic Risk Manager to join a leading Financial Instit...
View job & apply
Head of Prudential Risk & Compliance
- Location: London / Remote
- Salary: £120,000 - £140,000
- Job type: Permanent
- Sector: Banking
Our client is seeking a Head of Prudential Risk & Compliance to lead their firm-wide oversigh...
View job & apply
FAQs
Management of liquidity risk is critical to ensure that cash needs are continuously met. For instance, maintaining a portfolio of high-quality liquid assets, employing rigorous cash flow forecasting, and ensuring diversified funding sources are common tactics employed to mitigate liquidity risk.
How to quantify liquidity risk? ›
How Do You Measure Liquidity Risk?
- The current ratio or working capital. This compares current assets, including inventory, and liabilities.
- The acid test, or quick ratio. This measures only current assets, such as cash equivalents, against liabilities.
- The cash ratio or net working capital.
What is an example of a liquidity risk assessment? ›
An example of liquidity risk would be when a company has assets in excess of its debts but cannot easily convert those assets to cash and cannot pay its debts because it does not have sufficient current assets. Another example would be when an asset is illiquid and must be sold at a price below the market price.
What is the problem with liquidity risk? ›
Some of the most common sources/causes of liquidity risk include:
- Inefficient cash flow management. ...
- Lack of funding. ...
- Unplanned capital expenditures. ...
- Economic disruptions. ...
- Profit crisis.
What are the three types of liquidity risk? ›
The three main types are central bank liquidity, market liquidity and funding liquidity.
How do banks solve liquidity problems? ›
First, banks can obtain liquidity through the money market. They can do so either by borrowing additional funds from other market participants, or by reducing their own lending activity. Since both actions raise liquidity, we focus on net lending to the financial sector (loans minus deposits).
What is liquidity risk in simple words? ›
Liquidity risk is the risk of loss resulting from the inability to meet payment obligations in full and on time when they become due. Liquidity risk is inherent to the Bank's business and results from the mismatch in maturities between assets and liabilities.
What is the formula for liquidity? ›
It is calculated by dividing total current assets by total current liabilities. A higher ratio indicates the company has enough liquid assets to cover its short-term debts. In comparison, a low ratio suggests that the company may not have enough cash or other liquid assets to cover its immediate liabilities.
What are the key risk indicators for liquidity risk? ›
Liquidity Risk Indicators: Low levels of cash reserves, high dependency on short-term funding, or a high ratio of loans to deposits can hint at liquidity risk. Such indicators help banks ensure they can meet their financial obligations as they come due.
Is liquidity risk systematic? ›
Systemically important financial institutions (SIFIs) contribute to systemic liquidity risks through size and connectedness with other financial institutions, including through excessive reliance on the same providers of liquidity and large common exposures to similar types of assets.
Cash is the most liquid asset, followed by cash equivalents, which are things like money market accounts, certificates of deposit (CDs), or time deposits. Marketable securities, such as stocks and bonds listed on exchanges, are often very liquid and can be sold quickly via a broker.
Who is most affected by liquidity risk? ›
The fundamental role of banks typically involves the transfor- mation of liquid deposit liabilities into illiquid assets such as loans; this makes banks inherently vulnerable to liquidity risk. Liquidity-risk management seeks to ensure a bank's ability to continue to perform this fundamental role.
What are the two causes of liquidity risk? ›
Two main causes for corporate liquidity risk may be identified:
- The absence of a sufficient “safety buffer” to cover overall expenses (the most unexpected ones in particular);
- Difficulty finding necessary funding on the credit market or on financial markets.
What are examples of liquidity issues? ›
A liquidity crisis occurs when a company can no longer finance its current liabilities from its available cash. For example, it is no longer able to pay its bills on time and therefore defaults on payments. In order to avoid insolvency, it must be able to obtain cash as quickly as possible in such a case.
How can a business overcome a liquidity problem? ›
Ways in which a company can increase its liquidity ratios include paying off liabilities, using long-term financing, optimally managing receivables and payables, and cutting back on certain costs.
Which tool is used to manage liquidity risk? ›
Liquidity management tools—such as pricing arrangements, notice periods and suspension of redemption rights—can help alleviate the liquidity risk generated by investment funds.