Liquidity risks

Recent credit crises have demonstrated that liquidity is a fundamental cause of economic shocks, say Anthony Asher, Simon Webb and Andrew Doughman, who suggest that actuaries can play a vital role in finding solutions for liquidity risk.This is an edited extract of a paper that was prepared for the Institute of Actuaries of Australias (Institute) 4th Financial Services Forum 2008. Copyright 2008 Anthony Asher, Simon Webb and Andrew Doughman. No part of this article may be reproduced by any means without the written consent of the publisher.