notes to the consolidated financial statements - Sacombank

44.2.3 Price risk
The Group is exposed to equity securities price risk. The price risk relating to held for trading equity securities is managed
through the analysis of the market movement and investment decision is made based on the purpose of gaining profit in
short term. Investments on available for sale equity investments are made based on business purpose of the Group taking
into account of diversification in the investment portfolio.
44.3 Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its financial liabilities when
they fall due and to replace funds when they are withdrawn. The consequence may be the failure to meet obligations
to repay depositors and fulfil commitments to lend. The Group’s treasury department is responsible for the liquidity
management which is supervised by the Asset and Liability Committee (ALCO). The main management processes include:
n Monitor the day-to-day mobilisation and lending activities;
n Maintain a portfolio of securities that can be easily converted into cash; and
n Monitor the balance sheet liquidity ratios against the regulatory requirements of the SBV.
ANNUAL REPORT 2011 156