| Risk Supervisory view score | Considerations | in relation to inherent risk relation | Considerations in to adequate management and controls |
| There is a low risk of significant prudential impact on the investment firm considering the level of liquidity risk and 1 the management and controls. | | • There is non-material/very low risk. • The size and composition of the liquid asset is adequate and appropriate. • The level of other drivers of liquidity risk (including reputational risk, inability to transfer intragroup liquidity) is not material/very low. • There is non-material/very low risk from the investment firm’s funding profile or its stability. • Other drivers of liquidity risk (including reputational risk) are not material/very low. • Mismatches (between maturities, currencies) entail low to medium risk. • The risk posed by the size and composition of the liquidity buffer is low | • There is consistency between the investment firm’s liquidity risk management framework and its overall strategy and risk appetite. • Liquidity risk management and control systems are appropriate and in line with the investment firm’s risk management strategy and risk appetite. |
| There is a medium-low risk of significant prudential impact on 2 the investment firm considering the level of liquidity risk and the management and controls. | | to medium. • The level of other drivers of liquidity risk (including reputational risk, inability to transfer intragroup liquidity) is low to medium. • The risk posed by the investment firm’s funding profile and its stability is low to medium. • Other drivers of liquidity risk (including reputational risk) are low to medium. • Mismatches (including between maturities, currencies) entail medium to high risk. • The risk posed by the size and | |
| There is a medium-high risk of significant prudential impact on 3 the investment firm considering the level of liquidity risk and the management and controls. | • | composition of the liquid assets is medium to high. • The level of other drivers of liquidity risk (including reputational risk, inability to transfer intragroup liquidity) is medium to high. • The risk posed by the investment firm’s funding profile and its stability is medium to high. • Other drivers of liquidity risk (including reputational risk) are medium to high. Mismatches (including between maturities, currencies) entail high risk. | |
| There is a high risk of significant prudential impact on the 4 investment firm considering the level of liquidity risk and the management and controls. | • • • • | The risk posed by the size and composition of the liquid assets is high. The level of other drivers of liquidity risk (including reputational risk, inability to transfer intragroup liquidity) is high. The risk posed by the investment firm’s funding profile and its stability is high. Other drivers of liquidity risk (including reputational risk) are high. | |