This document discusses liquidity risk management and regulatory requirements under Basel III. It begins by defining asset liability management (ALM) and its goals of arranging assets and liabilities without compromising liquidity or safety while maximizing profits. It then discusses various liquidity risk indicators required under Basel III like the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). Interest rate risk management tools like simple sensitivity analysis and duration gap analysis are also outlined. The document notes liquidity management was not fully addressed in Basel II but is covered more rigorously in Basel III through these new standards and ratios.