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Webinar on Contingent Liability Risk Management: Measuring and Managing Risks Related to Sovereign Guarantees and On-lending

February 24, 2016

Washington, D.C.

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.

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    Contingent liabilities risk management: Measuring and managing risk related to sovereign guarantees and on-lending Wednesday, February 24, 2016, 9:00 – 11:00 a.m. Washington, D.C., time (U.S. Eastern Standard Time)

    8:45 - 9:00 a.m. Participants are requested to connect to the conference call to ensure a prompt start at 9:00 am.

    9:00 - 9:05 a.m. Welcome and introduction Abha Prasad, Lead Debt Specialist, Macroeconomics and Fiscal Management Global Practice, World Bank Group

    9:05 – 9:15 a.m. A risk management framework for sovereign guarantees and on-lending Fritz Bachmair, Junior Professional Officer, World Bank Treasury

    9:15 – 9:30 a.m. Presentation of country case: Sweden Ann-Christine Hagelin, Senior Analyst, Guarantees and Loans, Swedish National Debt Office

    9:30 – 9:45 a.m. Presentation of country case: Turkey Harun Akkas, Head of Credit Risk Management Department, Turkish Treasury

    9:45 – 10:00 a.m. Counterparty credit risk analysis at the World Bank Fred Haddad, Manager, Market and Counterparty Risk Department, World Bank Group

    10:00 – 10:55 a.m. Open discussion among participants and presenters

    10:55 – 11:00 a.m. Wrap-up and closing Cigdem Aslan, Lead Financial Officer/Sovereign Debt, World Bank Treasury