A plan setting out how a firm would raise cash in a liquidity crisis, with triggers and responsibilities. It lists sources and the order to use them.
Where you will meet it
Contingency funding plan comes up in 7 learning outcome notes across the FRM syllabus.
A few of them:
Liquidity Risk FRM Part II · Liquidity and treasury risk measurement and management
“They ask for a set liquidity risk tolerance, pricing of liquidity costs into business decisions, stress testing, a contingency funding plan, a cushion of liquid assets and disclosure.”
Liquidity and Leverage FRM Part II · Liquidity and treasury risk measurement and management
“Management tools are diversified and termed-out funding, collateral buffers, limits and a contingency funding plan.”
Early Warning Indicators FRM Part II · Liquidity and treasury risk measurement and management
“Its 2008 Principles for Sound Liquidity Risk Management and Supervision expect banks to monitor early warning indicators of emerging stress, both quantitative and qualitative, bank-specific and market-wide, and to link them to the contingency funding plan (CFP).”
Early Warning Indicators FRM Part II · Liquidity and treasury risk measurement and management
“Within liquidity risk management, early warning indicators (EWIs) are the monitoring layer that connects day-to-day measurement to the contingency funding plan (CFP).”
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