The identification process must consider, among other things, the nature of exposure, the creditworthiness of the counterparty, correlations between the various business and geographical sectors, and the nature of the relationship with various counterparties. IB must be able to identify incidents that can negatively influence perception in the marketplace about its creditworthiness and the fulfilment of its obligations.

1. i.refinancing risk (e.g. due to system-wide liquidity stress or credit crunch),
2. ii.the inadequacy of the liquidity infrastructure in the jurisdiction, or
3. iii.the inability of a particular counterparty to renew a liquidity facility, in the absence of more general liquidity stress.

Due to the significant size of such transactions and their potential impact on the profitability and liquidity of the institution, IB must monitor the timing, counterparties, nature and terms of transactions (e.g. secured or unsecured), etc.

1. -Rapid asset growth, especially when funded with potentially volatile liabilities.
2. -Growing concentrations in assets or liabilities.
3. -Increases in currency mismatches.
4. -A decrease of weighted average maturity of liabilities.
5. -Repeated incidents of positions approaching or breaching internal or regulatory limits.
6. -Negative trends or heightened risk associated with a particular product line, such as rising delinquencies.
7. -Significant deterioration in the IB’s earnings, asset quality, and overall financial condition.
8. -Negative publicity.
9. -A credit rating downgrade.
10. -Stock price declines or rising debt costs.
11. -Widening debt or credit-default-swap spreads.
12. -Rising wholesale or retail funding costs.
13. -Counterparties that begin requesting or request additional collateral for credit.
14. -Correspondent banks that eliminate or decrease their credit lines.
15. -Increasing retail deposit outflows.
16. -Increasing redemptions of Islamic CDs before maturity.
17. -Difficulty accessing longer-term funding.