The Liquidity-at-Risk (short: LaR) is a measure of the liquidity risk exposure of a financial portfolio.
It may be defined as the net liquidity drain which can occur in the portfolio in a given risk scenario. If the Liquidity at Risk is greater than the portfolio's current liquidity position then the portfolio may face a liquidity shortfall.
Liquidity at Risk is different from other measures of risk based on total loss, as it is based on an estimate of cash losses, or liquidity outflows, as opposed to total loss.