Description of Topic
Contingent liabilities from guarantees and contingent assets from on-lending, can pose substantial risks to government finances. Prudent risk monitoring and risk management can help identify and mitigate these risks. Analyzing and measuring risks related to guarantees and on-lending is an important element of risk management and a starting point for designing and implementing various risk mitigation measures, such as guarantee fees, provisions for financial losses, and risk monitoring and reporting.
At this webinar sovereign risk managers from the Swedish National Debt Office and the Turkish Undersecretariat of Treasury will share their experiences in analyzing and measuring risks to governments from the issuance of guarantees and on-lending. Presenters will elaborate on the rationale for choosing a specific risk analysis approach and how it was adapted for the country specific context. Presenters will briefly discuss how insights from risk analysis are used in designing risk management tools. Additionally, the head of the World Bank’s counterparty credit risk unit will present the World Bank’s approach to credit risk management. Also a recent paper on contingent liabilities risk management will be presented. The paper may be found here.