Explain the use of gap management techniques to cope with both interest rate and liquidity risk.?

Answer 1

According to "Teach me Finance" gap management -- a technique using hedging to offset difference in the volume of assets and liabilities being repriced within a given time period. Repricing occurs because assets or liabilities mature and are reinvested at new rates or because they carry adjustable rates tied to some index. Gap refers to a specific period of time, such as a 30-day gap, in which assets repricing exceed or fall short of repricing liabilities.

There is also an excellent explanation at riskglossary.com:
http://www.riskglossary.com/link/gap_analysis.htm