9.1.3.2.1 Contractual Run

This is the first Run defined using the Run Management window of the LRM Application and carries out the data preparation, aggregation and reclassifications required for computation of liquidity risk metrics under multiple scenarios. Contractual Run computes the as-of-date liquidity position of the organization without taking into account any behavioral conditions and forms the base for all subsequent calculations.

A contractual Run allows you to estimate liquidity gaps based on the contractual cash flows received as a download from the bank. It aggregates cash flows based on user-specified aggregation dimensions, identifies HQLA, allocates insurance and identifies deposit stability and so on. All cash inflows and outflows are assumed to be generated under contractual terms. Contractual execution caters to the as of date liquidity status of the organization without the application of any business assumption.