This section should describe how the results of the various risk assessments are brought together and an overall view taken on liquidity adequacy. At the general level, the overall reasonableness or the detailed quantification approaches might be compared with the results of an analysis of liquidity planning and a view taken by senior management as to the overall level of liquidity that is appropriate.
In aggregating the risks, the following aspects of the aggregation process should be described:
i.
Any allowance made for diversification, including any assumed correlations within risks and between risks and how such correlations have been assessed including in stressed conditions.
ii.
The justification for diversification benefits between and within legal entities , and the justification for the free movement of liquidity between legal entities in times of financial stress.
