Banking and risk management advisory services
Their work transformed the Bank’s lending products from a complex, pooled currency instrument to the Libor based products that it offers today. At the same time, his team introduced various hedging products.
“The hedging products would enable our clients to transform the risk characteristics of their existing portfolios so it was a very big deal and it was very well managed by Treasury,” remembers Graeme.
Today that team, called Financial Products in the Financial Advisory and Banking Department (FABBK), continues to advise clients on the Bank’s lending and risk management products. Its risk management tools have now extended to include commodity hedges as well as catastrophe risk products to help clients manage the risk from natural disasters like earthquakes, hurricanes and even droughts.
Debt management advisory services
Under Graeme’s leadership as Treasurer, Treasury began its debt management advisory services to help countries manage their sovereign debt.
“Finance Ministries are charged to manage large debt portfolios, which are often the largest portfolios in a country and which can generate substantial risk to its balance sheet,” says Graeme. “I felt it was our responsibility to provide capacity building in sovereign debt management to our clients.”
Graeme, with his deep experience on Public Financial Management, in particular, on debt management, authored “Sound Practice in Government Debt Management”, a revolutionary book published in 2004 that served as a handbook for debt management practitioners.
From an initial 12 country clients in 2005, the program reached to 49 client countries. Initially focused on technical assistance to help countries design reform programs and debt strategies, in 2011 the objectives expanded with the introduction of the Government Debt and Risk Management Program (GDRM)—one of Treasury’s flagship programs. Today, the Financial Advisory and Banking Department Government Debt & Risk Management Advisory (FABDM) team draws on the expertise of colleagues across World Bank Group to help countries design debt strategies, execute financing transactions efficiently, develop government bond market and manage risks coming from contingent liabilities. In addition to the advisory services the team offers a range of training and knowledge products.
Asset management advisory services
Graeme also helped create the Reserves Advisory Management Program (RAMP) during his tenure as Treasurer. Launched in 2001, RAMP provides capacity building and investment management services to central banks, sovereign wealth funds, and national pension funds to help countries efficiently manage foreign currency reserves and other investment portfolios. From an initial two clients, RAMP grew to 20 clients during Graeme’s tenure, and today serves 65 clients.
Risk and analytics monitoring
Graeme, when he was Treasurer, also set up a dedicated quantitative strategies risk and analytics team, known today as Quantitative Solutions, SAA & Analytics (QSA) department, to house all the risk management work being done in the various Treasury departments. This created what he calls “a power house” of risk management, strategic planning and quantitative analysis department that offered quantitative advisory for capacity building of central banks which evolved today to include sovereign wealth & pension funds, office of debt management & strategic partners. The department promotes the World Bank Group image and global standing by working as a research hub through partnerships, peer-reviewed articles, internal & external publications, and conferences. QSA today has become the focal point of all World Bank Treasury quantitative needs.