Final answer:
Reviewing the cash held at personal risk involves ensuring that it is commensurate with needs and complies with reserve requirements set forth by banking regulations. These requirements mandate a certain ratio of customer deposits to be held as reserves by financial institutions.
Step-by-step explanation:
When reviewing the cash held at personal risk, it's important to ensure that it is commensurate with needs and in compliance with regulatory requirements. In the context of banking and finance, reserve requirements are a critical part of regulatory compliance.
Banks manage their cash levels to meet these requirements while also ensuring they have sufficient liquidity to meet their clients' needs. It is a delicate balance to maintain adequate cash reserves for stability and operational effectiveness without holding excess cash that could otherwise be utilized for lending or investment purposes.