Measurement of insolvency risk

Measuring insolvency risk falls apart into three tasks:
Ω Evaluating the forward payment structure of the FI to gain a first forecast of the
FI’s exposure to a critical lack of funds,
Ω Assessing the correctness of this projection in order to come to an understanding
of the nature and magnitude of possible departure from reality in the forecast,
and finally
Ω Analysing the structure of assets of the FI to estimate its counterbalancing
capacity.