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Checklist

Liquidity Stress Test Checklist

Ensuring access to cash is a core responsibility for CFOs and treasurers. In uncertain environments, that mandate requires building a resilient liquidity strategy that can withstand market stress, shocks, and crises to ensure obligations are met.

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This checklist is intended to help teams evaluate exposures across banks, funds, and cash equivalents, and to surface risks that may become visible during periods of heightened market stress. It is a high-level framework designed to support internal review and discussion, not a substitute for institution-specific analysis, professional advice, or formal risk assessment.

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Key Takeaways:

Understand the risk profile of the underlying asset:

Liquidity, price stability, and time to conversion determine the likelihood of an asset being converted to cash in a crisis scenario.

Assess the institutions and counterparties involved

The institutions and intermediaries involved influence how quickly and reliably cash can be accessed. For example, some assets rely on functioning intermediaries or short-term funding markets to remain liquid.

Examine the structure of each instrument

Ownership structure, commingling, balance sheet exposure, and segregation determine whether cash remains accessible under stress.

Test how redemptions actually work under pressure

Liquidity in normal conditions may not translate into usable cash when redemption demand accelerates.

Evaluate operational reliability

When obligations must be met, the institution you operate through must remain functional, responsive, and reliable at all hours.

Access to Cash When It Matters Most

Ensuring liquidity under stress is not just about what assets are held, but about whether those assets can be converted into payments when it matters most. The true test of a liquidity strategy is whether it delivers certainty of access, settlement, and continuity when markets and institutions are under pressure.

Jiko is purpose-built to serve as a resilient reserve for that critical portion of cash. By combining direct investment in U.S. Treasury bills with a de-levered structure and always on settlement through JikoNet, Jiko enables treasurers to keep cash operable and ensure obligations can be met during significant market and banking stress.

To discuss how Jiko can support a resilient cash strategy, connect with the team here.