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The risk that an entity will not be able to meet its financial obligations as they come due, due to an inability to convert assets to cash or obtain new financing.

A regulatory requirement that aims to ensure financial institutions have enough high-quality liquid assets to withstand a 30-day stressed funding scenario.

A long-term liquidity measurement designed to ensure institutions have enough stable funding to meet their activities over a one-year horizon.

The process of estimating the flow of cash in and out of a business, which is crucial to assess liquidity risk and ensuring there is enough cash to cover liabilities.

The difference between liquid assets and short-term liabilities, with a negative gap indicating potential liquidity risk.

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as $\frac{Current assets - Inventory}{Current liabilities}$.

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its current assets, defined as $\frac{Current assets}{Current liabilities}$.

The process of converting assets into cash quickly, typically at a discount, to meet immediate liquidity needs.

A stringent liquidity ratio that measures the ability of a company to cover its short-term liabilities only with cash and cash equivalents, calculated as $\frac{Cash and cash equivalents}{Current liabilities}$.

The risk of being unable to quickly buy or sell assets in the market without a significant change in their price.

The risk that a company will not be able to meet its obligations due to an inability to secure new debts or equity.

The risk associated with off-balance sheet obligations and commitments that may require funding under certain conditions.

The risk that a lack of liquidity impacts a firm's daily operations, potentially leading to insolvency.

A measure of potential future liquidity deficit under adverse conditions, over a certain time period.