Large Bank Examination Workshop February 2026

Risk - Culture Drives Behavior

• Risk capacity – what is the top level of acceptable risk?  used to set Risk Appetite Statement • Risk Appetite Statement (RAS) – level of risk Board and firm is willing to accept. Needs to be clearly articulated. • RAS is translated into key liquidity risk metrics and management responsibilities to establish control of liquidity risk  Established governance structure  Measurable limits

 Defined scenario analysis  Required liquidity reports

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Let’s go to Exercise 1 on Page 1

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