ALM Analyst
93% skill overlap
Your role
Liquidity Risk Analyst
Full profileYour role
- L3 salary
- Not published yet
- Upcoming dated changes
- 12 changes ahead
What the role does
A liquidity risk analyst measures whether a bank can meet its payments in normal and stressed conditions. The role produces and explains regulatory metrics such as the LCR (Liquidity Coverage Ratio) and the NSFR (Net Stable Funding Ratio), runs internal liquidity stress tests and cash flow forecasts, monitors limits and early warning indicators, and supports the ILAAP (Internal Liquidity Adequacy Assessment Process). The role sits in the risk or treasury function of banks and works closely with treasury, finance and regulatory reporting.
Read a day in the life
A day in the life
The morning starts with the daily liquidity report. The analyst checks that the position data loaded overnight is complete, then reviews the main metrics: liquidity buffer, survival horizon under stress and the daily LCR estimate. Large movements are explained, for example a deposit outflow, a bond purchase or a change in collateral posted. Any limit or early warning breach is escalated to treasury and risk management. Mid-morning the analyst answers questions from treasury on the funding impact of a planned transaction. The afternoon is often for deeper work: refreshing stress test assumptions on deposit behaviour, documenting a methodology change, reconciling metrics with the regulatory reporting team or preparing slides for the asset and liability committee. Periodically there are supervisory data requests, internal audit reviews and the annual ILAAP document. Throughout, the analyst works in spreadsheets, risk systems and increasingly in SQL or Python.
Levels
- L1 Starting out
- L2 Independent
- L3 Senior or specialist
- L4 Leads a team or an area
- L5 Leads the function
Full level descriptions and job titles
The EFO level names are the common scale; job titles differ between employers.
| Level | What the work looks like | Typical years | Typical job titles |
|---|---|---|---|
| L1 Starting out | Produces daily and monthly liquidity reports with defined steps, checks data quality, explains simple movements and learns the LCR, NSFR and stress test rules under supervision. | 0-2 | Banks: Analyst, Junior Analyst, Associate (asset servicing), Trainee, GraduateAsset servicers: Junior, Specialist (entry), Officer |
| L2 Independent | Owns a metric or report end to end, explains movements to treasury and committees, trains new joiners and is the first contact for questions from finance and regulatory reporting. | 2-5 | Banks: Analyst / Senior Analyst, AssociateAsset servicers: Specialist, Senior Specialist, Senior Officer |
| L3 Senior or specialist | Designs and reviews stress test assumptions and methodologies, handles new products and regulatory changes, and represents liquidity risk in projects, audits and supervisory reviews. | 5-9 | Banks: Senior Associate, AVP, Assistant ManagerAsset servicers: Senior Specialist, Expert, Team Lead (small team) |
| L4 Leads a team or an area | Leads a liquidity risk team, owns limits, the risk appetite metrics and the control framework, and is the escalation point for breaches and for the asset and liability committee. | 8-14 | Banks: VP, Manager, Senior ManagerAsset servicers: Team Lead, Manager, Head of Section |
| L5 Leads the function | Accountable for liquidity risk management in a legal entity or region, sets the framework and risk appetite proposals, and represents the function with the board and supervisors. | 12+ | Banks: Director, Executive Director, Managing Director, Head of functionAsset servicers: Head of Department, Director |
Skills
Where the skill weights come from
Each role lists its skills with a tier and a weight. The weights of one role add up to 100 percent.
Source: the EFO role catalogue, built from the ESCO classification and reviewed by the editors.
The percentage is the skill's share of the role; the bars are drawn relative to the anchor skill, which is shown full.
Critical
- Liquidity metrics (LCR, NSFR)Weight 14.6%Relevant to you
- Asset-liability management and rate riskWeight 9.8%Relevant to you
- Basel framework and capitalWeight 9.8%Relevant to you
- Advanced Microsoft ExcelWeight 9.8%Relevant to you
Important and supporting skills 17
Important
- Treasury and cash flow managementWeight 4.9%Relevant to you
- Querying data with SQLWeight 4.9%Relevant to you
- Prudential and regulatory reporting (COREP, FINREP, US call reports)Weight 4.9%Relevant to you
- Attention to detailWeight 4.9%Relevant to you
- Risk judgment and escalation instinctWeight 4.9%Relevant to you
- Professional written communicationWeight 4.9%Relevant to you
- Data cleaning and validationWeight 4.9%Relevant to you
- Financial markets knowledgeWeight 4.9%Relevant to you
Supporting
- Descriptive statistics and distributionsWeight 2.4%Relevant to you
- Visualisation tools (Power BI, Tableau)Weight 2.4%Relevant to you
- Derivatives and how they workWeight 2.4%Relevant to you
- Stakeholder managementWeight 2.4%Relevant to you
- Working to tight deadlinesWeight 2.4%Relevant to you
- Control mindset (what could go wrong)Weight 2.4%Relevant to you
Useful
- Python for data analysisWeight 0.8%Relevant to you
- Model validation and governanceWeight 0.8%Relevant to you
- Investigative reasoning on anomaliesWeight 0.8%Relevant to you
Processes
The work the role takes part in.
What each process covers
- Capital calculationMain
- Liquidity and balance sheet managementMain
- Prudential reportingSupporting
- Treasury and cash managementSupporting
Where the role concentrates
How AI is changing the role
Data collection, metric production and standard commentary are being automated, and generative AI can draft first versions of variance explanations and reports.
Read the full assessment
Data collection, metric production and standard commentary are being automated, and generative AI can draft first versions of variance explanations and reports. The European Banking Authority reports that EU banks increasingly use AI for internal processes while supervisors expect strong governance of models and data. Value moves to judgement: setting behavioural assumptions, challenging forecasts, explaining stress results to committees and supervisors, and validating automated outputs. The World Economic Forum Future of Jobs Report 2025 lists analytical thinking as the top core skill, which matches this shift.
Dated changes for this role
- Swiss SIC participants must receive instant paymentsRelevant to you
- Digital euro regulation in final negotiationsRelevant to you
- Swiss capital and liquidity ordinance changes from January 2027Relevant to you
- CRR3 output floor rises to 60 percent in 2027 and 65 percent in 2028Relevant to you
- UK Basel 3.1 rules take effectRelevant to you
Worth knowing
Salary snapshot
Salary figures are not published yet
The L3 salary range for this role, with its sources, will appear here when the salaries section opens.
Certifications
- FRM
- PRM
- CFA Program Level I
- ACCA Qualification
Concepts to know
- CCP (Central counterparty)
- Intraday liquidity
- LCR (Liquidity Coverage Ratio)
- Repo (Repurchase agreement)
- T2 (TARGET RTGS and central liquidity management)
- ALMM (Additional liquidity monitoring metrics)
- Asset and liability management (ALM)
- Asset encumbrance
All 24 concepts
- Behavioural modelling
- Clearing member
- Collateral management
- Contingency funding plan (CFP)
- Default fund
- Deferred net settlement (DNS)
- Eurosystem collateral framework
- EVE (economic value of equity)
- FRM (Financial Risk Manager)
- Haircut
- HQLA (High-quality liquid assets)
- ILAAP (Internal Liquidity Adequacy Assessment Process)
- Initial margin (IM)
- Intraday credit
- IRRBB (Interest rate risk in the banking book)
- Key risk indicator (KRI)
Neighbouring roles
Roles that need many of the same skills, by weighted skill overlap, with the skills you would need to add.
Liquidity Reporting Analyst
61% skill overlap
To add: International accounting standards (IFRS), Accounting fundamentals (double entry), Group consolidation
Your role
Capital Reporting Analyst
58% skill overlap
To add: International accounting standards (IFRS), Group consolidation, Accounting fundamentals (double entry)
Your role
Regulatory Reporting Analyst
58% skill overlap
To add: International accounting standards (IFRS), Accounting fundamentals (double entry), Group consolidation
Your role
Credit Risk Analyst
52% skill overlap
To add: Credit analysis and creditworthiness, Financial statement analysis and ratios, Credit risk models (IFRS 9, IRB)
Your role
Market Risk Analyst
51% skill overlap
To add: Risk measures and sensitivities, Independent price verification
Your role
Do this job? Suggest a correction
Sources
- ESCO occupation: financial risk analyst (external site)
- ESCO occupation: risk manager (external site)
- GARP, Financial Risk Manager (FRM) certification (external site)
- European Banking Authority, Special topic: artificial intelligence (external site)
- World Economic Forum, Future of Jobs Report 2025 (external site)
LCR (Liquidity Coverage Ratio)The Liquidity Coverage Ratio requires a bank to hold enough unencumbered high-quality liquid assets to cover its net cash outflows over a 30-day stress period. It must be at least 100% under the CRR and Commission Delegated Regulation (EU) 2015/61.
NSFR (Net Stable Funding Ratio)The Net Stable Funding Ratio compares available stable funding (capital and longer or sticky liabilities) with required stable funding (set by the liquidity and maturity of assets) over a one-year horizon. The minimum is 100%. It applies in the EU since June 2021 under CRR2.
Early warning indicators (credit)Early warning indicators are signals that a borrower's credit quality is weakening before default, such as overdraft excesses, missed covenants, rating downgrades, falling turnover or negative news. Triggered cases go to a watchlist for closer review and action.
ILAAP (Internal Liquidity Adequacy Assessment Process)The ILAAP is a bank's own process for identifying, measuring and managing its liquidity and funding risks and assessing whether its liquidity buffers and funding profile are adequate, including under stress. It is required by Article 86 of the CRD and feeds into the SREP.
Stress test (supervisory)A supervisory stress test projects a bank's capital under a common adverse macroeconomic scenario over several years. The EBA coordinates the EU-wide exercise every two years, and the results inform Pillar 2 guidance. Banks also run internal stress tests for the ICAAP and ILAAP.
Internal auditInternal audit is the independent function that gives the board assurance on governance, risk management and internal controls. In the three lines model it is the third line, reporting to the audit committee. Banking rules require it to be independent of the activities it audits.
SQL (Structured Query Language)SQL is the standard language for defining, querying and changing data in relational databases, standardised as ISO/IEC 9075. Analysts use it to select, filter, join and aggregate tables; it is the most requested technical skill in finance data roles.
Generative AIGenerative AI is a family of AI models that produce new content (text, code, images, audio) in response to a prompt, by learning patterns from very large datasets. In finance it is used for drafting, summarising documents, coding help and customer service assistants.