Related provisions for BIPRU 12.4.-2

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BIPRU 12.3.4RRP
A firm must have in place robust strategies, policies, processes and systems that enable it to identify, measure, manage and monitor liquidity risk over an appropriate set of time horizons, including intra-day, so as to ensure that it maintains adequate levels of liquidity buffers. These strategies, policies, processes and systems must be tailored to business lines, currencies and entities and must include adequate allocation mechanisms of liquidity costs, benefits and risks.22[Note:
BIPRU 12.3.5RRP
The strategies, policies, processes and systems referred to in BIPRU 12.3.4 R must be proportionate to the complexity, risk profile and scope of operation of the firm, and the liquidity risk tolerance set by the firm'sgoverning body in accordance with BIPRU 12.3.8 R, and must reflect the firm's importance in each EEA State, in which it carries on business2.[Note: annex V paragraph 14a of the Banking Consolidation Directive]2
BIPRU 12.3.8RRP
A firm must ensure that:(1) its governing body establishes that firm'sliquidity risk tolerance and that this is appropriately documented;2(2) its liquidity risk tolerance is appropriate for its business strategy and reflects its financial condition and funding capacity; and2(3) its liquidity risk tolerance is communicated to all relevant business lines.2[Note: annex V paragraph 14a of the Banking Consolidation Directive]2
BIPRU 12.3.22BRRP
2A firm must also have regard to existing legal, regulatory and operational limitations to potential transfers of liquidity and unencumbered assets amongst entities, both within and outside the EEA.[Note: annex V paragraph 17 of the Banking Consolidation Directive]
BIPRU 12.4.-1RRP
2A firm must consider alternative scenarios on liquidity positions and on risk mitigants and must review regularly the assumptions underlying decisions concerning the funding position. For these purposes, alternative scenarios must address, in particular, off-balance sheet items and other contingent liabilities, including those of securitisation special purpose entities(SSPEs) or other special purpose entities, in relation to which the firm acts as sponsor or provides material
BIPRU 12.4.10RRP
A firm must adjust its strategies, internal policies and limits on liquidity risk and develop an effective contingency funding plan, taking into account the outcome of the alternative scenarios referred to in BIPRU 12.4.-1 R.2[Note: annex V paragraph 212of the Banking Consolidation Directive]2
BIPRU 12.4.11RRP
In order to deal with liquidity crises, a firm must have in place contingencyplans setting out adequate strategies and proper implementation measures in order to address possible liquidity shortfalls. Those plans must be regularly tested, updated on the basis of the outcome of the alternative scenarios set out in BIPRU 12.4.-1 R, and be reported to and approved by the firm'sgoverning body, so that internal policies and processes can be adjusted accordingly.22[Note: annex V paragraph