Guidance for Operational Risk Management in Government Debt Management
Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. In debt management operations, the categories of risks, such as market risk, credit risk, refinancin...
| Main Authors: | , , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/419301468153852761/Guidance-for-operational-risk-management-in-government-debt-management http://hdl.handle.net/10986/27822 |
| Summary: | Operational risk is defined as the risk
of loss resulting from inadequate or failed internal
processes, people and systems or from external events. In
debt management operations, the categories of risks, such as
market risk, credit risk, refinancing risk and liquidity
risk, are relatively well known; however operational risk is
not. The area has not been given due attention to by
government debt managers in developing a risk management
framework. A similar conclusion on aspects pertaining to
operational risk management is borne out from the early
results of the World Bank's assessments using its
government Debt Management Performance Assessment (DeMPA)
tool. This paper thus, introduces the concepts of
operational risk as applied to government debt management
(DeM) and attempts to present a framework for debt managers
to manage operational risks while undertaking public debt
management operations. It draws on existing literature for
operational risk management principles and practices that
have been formulated by the Bank for International
Settlements (BIS) Basel Committee on Banking Supervision,
the Committee of Sponsoring Organizations (COSO) and the
findings of the DeMPAs. |
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