How to manage liquidity risk?

Both market risk and credit risk are covered. Do we need to know how to manage liquidity risk?

just invest in liquid markets or use derivatives (futures).

In managing market risk, the second one is liquidity limit, which might be also related?

i think mkt risk is the parent of liquidity risks. mkt risk includes interest rate risk, FX risk and liquidity risk.

I disagree that mkt risk includes liquidity risk, but I also think that managing liquidity risk is tough. I think liquidity risk has two components: a) How long will it take you to get out of your position? b) How much will it cost?