Liquidity risk is the chance that an institution cannot meet cash or funding needs when they come due. In banking, that means having enough immediately available money, or access to borrowing, to settle payments, honor withdrawals, and satisfy regulatory requirements.
In cyber security, liquidity risk matters because a digital disruption can interfere with the systems that move money, manage collateral, or communicate with counterparties. A ransomware event, outage, or compromised treasury platform may not only stop business operations; it can also delay funding decisions and reduce confidence in the institution. Defenders and risk teams therefore test cyber resilience alongside continuity planning, making sure critical payment processes, manual fallbacks, and third-party dependencies can still support cash flow under stress.