Explanation:
Governance and oversight is a critical component of a CFP, encompassing stakeholder involvement, as well as clear definitions of roles and responsibilities during a liquidity event. Option B is incorrect because it describes a liquidity metric/ratio, not a contingent action. Option C is incorrect as adjusting pricing strategies and issuing subordinated debt are contingent actions, not components of monitoring and escalation. Option D refers to HQLA asset classifications under LCR, not the general Data and reporting component of a CFP.
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20.12.3. Which of the following is CORRECTLY specified as a key component of a typical contingency funding plan, CFP?
A
Governance and oversight include stakeholder involvement, roles, and responsibilities
B
Contingent actions include overnight borrowings to total assets
C
Monitoring and escalation include adjusting pricing strategies and issuing subordinated debt
D
Data and reporting includes Level 1, Level 2, and Level 3