Bank on Wipfli - Blog and Podcast

 

The Best-Laid Plans

Jun 16, 2019
Financial Institutions

For Mother’s Day, my wife and I had a long weekend in Montgomery, Alabama, visiting our daughter’s family. There was a flight to Birmingham and then a drive to Montgomery. I returned on Sunday evening, careful to have booked a flight in time for an ALM presentation I had on Monday for a state CPA financial institutions program. My wife, a third-grade teacher, had a substitute for Monday so she could spend an additional day with the grandchildren.

As she had in the past, she prepared an extra day of lessons for the substitute in case her travel plans went awry. Needless to say, about 20 minutes into Monday afternoon’s drive to Birmingham, my wife’s phone popped up a text message—flight cancelled! After verification that there were no other available flights out on Monday, my daughter began the rebooking process. Meanwhile, my wife texted her principal, called the administrative assistant to schedule another day for the substitute and called her teaching partner to make the necessary copies and lay out her extra day of planned lessons. Ah yes, a contingency plan well executed!

How often have you reviewed your liquidity contingency plan? My wife reviewed her contingency plan yearly and didn’t need to use it until the last weeks of her teaching career. Although that plan will be permanently shelved in a few weeks, she and I will start anew with contingency plans in her retirement.

Whether it’s a change in procedures, a change in your deposit products, a new branch or a new member on the Asset/Liability Committee (ALCO), or just if it’s been a while, take some time at your next ALCO meeting to review your liquidity contingency plan. Even better, test it to see whether it is sound. If that text message pops up with a serious issue, are you ready to address it and execute your plan? Contact your Wipfli relationship executive if you need help in refreshing or testing your plans.

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