Q.42 Joe Hart, a market analyst at Smart Investment Bank, has been tasked with the development of early warning signals to help the bank to monitor potential liquidity stress events. At the preliminary stage, Mr. Hart has researched on a set of background guidelines as follows:

I. All EWIs must be updated every two months to detect potentially threatening events
II. Their bank should conduct a variety of short-term and protracted bank-specific and market-wide liquidity stress tests using conservative and regularly reviewed assumptions
III. The bank should establish a robust escalation policy so that critical decisions and transactions are handled at an appropriate level of management.

As a risk analyst, which of the above proposals would you disagree with?