Liquidity Management in Financial Companies in the UK: IntroductionRisk is the basic element that determines financial behaviors and without risk, the financial system would be massively simplified , but this risk is already present in real-world financial institutions. Therefore, it is necessary to effectively manage risk to survive in this very uncertain banking environment which will undoubtedly rely on risk management dynamics. Therefore, only banks with an effective risk management system will survive in the market in the long term. The UK's monetary policy aims to achieve monetary stability, and this objective generally works based on the price at which money is lent or invested and the interest rate. In March 2009, the MPC announced that in addition to setting the bank rate, it would begin injecting money directly into the economic sector by purchasing financial assets, often referred to as quantitative easing. . Furthermore, in August 2013, the MPC provided explicit guidance regarding the future conduct of monetary policy. The MPC intends at a minimum to maintain the current, highly simulating monetary policy stance until the economic recession is significantly reduced, provided this does not result in significant risks to price stability. or financial stability. Liquidity managementLiquidity risk has emerged as a major risk in the banking sector; Liquidity management is the top priority of bank management and regulators. British banking is exposed to a variety of risks. The objective of this part is to identify and describe these risks. The research has highlighted the following risks.Liquidity RiskThere are some potential risks arising from diminishing liquidity which it will mention below.1)Credit Risk: It...... middle of paper.. ....itable cash management through real-time tracking and monitoring of excess positions, automated account scanning, does not depend on costly intraday borrowing to improve liquidity More efficient investment and financing decisions provided with greater clarity in cash movements. Improved balance information through reconciliation of corresponding movements, removing the need for assumed settlements and next day statements. and forward currencies). Use many tools to manage and evaluate IRR, such as duration gap analysis, maturity gap analysis, what-if analysis, value-at-risk analysis (VAR) and option adjusted spread analysis (OAS).