What should NED's know about liquidity?

In most regions, non-executive directors (NED) have very similar responsibilities as executive directors but simply do not have the same insight as Executive Directors.

Non-executive directors (NEDs) play a crucial role in overseeing a company's liquidity, ensuring that there are adequate financial resources to meet the company's objectives. They are responsible for providing independent oversight and constructive challenge to the executive directors, particularly in areas of strategic direction and risk management. NEDs must ensure that the company's financial information is accurate and that financial controls and systems for risk management are robust and defensible. They also contribute to the development of frameworks that assess and regulate risks, including those related to liquidity.

NED should go beyond the information provided and ask questions about diversification risk, limit and credit risk, conflicts of interest and evidence of structured and auditable investment decisions.

This example dashboard tells a story.

#betterinterestrates #depositoptimization #cfo #treasury #NED #cashflow #cashmanagement #interestrates #riskpolicy #liquidity #boardmeeting #boardreports #governance #fiduciary #bestinterest #yield #riskmanagement