436. To achieve a comprehensive understanding of the institution's liquidity and funding risk profile, competent authorities should also review the governance and risk management framework underlying its liquidity and funding risk. To this end, competent authorities should assess:
a. the liquidity risk strategy and liquidity risk tolerance;
b. the organisational framework, policies and procedures;
c. risk identification, measurement, management, monitoring and reporting;
d. the institution's liquidity-specific stress testing;
e. the internal control framework for liquidity risk management;
f. the institution's liquidity contingency plans; and
g. the institution's funding plans.
Liquidity risk strategy and liquidity risk tolerance
437. Competent authorities should assess whether the institution appropriately defines and communicates its liquidity risk strategy and liquidity risk tolerance. They should take into account:
a. whether the liquidity risk strategy and liquidity risk tolerance
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