## pp120715-implementation-plan

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---

### EXECUTIVE SUMMARY — Introduction and Purpose
- Purpose: Management’s forward-looking implementation plan (MIP) in response to the Independent Evaluation Office (IEO) evaluation “IMF Response to the Financial and Economic Crisis.”
- Context: Executive Directors welcomed the evaluation; country authorities broadly supportive of post-crisis initiatives to strengthen macroeconomic and financial surveillance.
- Linkages: Many proposed actions are already underway as part of the 2014 Triennial Surveillance Report (TSR) Action Plan, the FY2016–18 Medium-Term Budget, and efforts to ratify the 2010 Quota and Governance Reforms.
- Monitoring: Progress monitored primarily through future Periodic Monitoring Reports (PMRs), updates on the TSR Action Plan (including an interim implementation assessment in early 2017), the Crisis Program Review, and follow-up work for other broader reviews of surveillance.

### IEO recommendations and Board reactions
- Four high-level IEO recommendations:
  - Ensure that the IMF, as a quota-based institution, has sufficient resources to contribute to future crisis resolution.
  - Develop guidelines for structuring engagements with other organizations, whether as a member or a partner.
  - Consolidate and simplify the current framework to identify and assess risks and vulnerabilities, including making the Early Warning Exercise (EWE) more user-friendly and enhancing outreach on its results.
  - Update annually the Financial Sector Assessment Programs (FSAPs) for the world’s five to seven largest systemic financial centers in conjunction with IMF’s bilateral surveillance.
- Board reaction:
  - Executive Directors broadly endorsed the first three recommendations.
  - Most Directors saw limited merit in annual FSAP updates for the five to seven largest systemic centers, citing resource costs and the slow evolution of structural and institutional factors.
  - Directors supported guidelines defining broadly applicable principles of engagement with other organizations, subject to flexibility and pragmatism.
  - Diverging views on dissemination of EWE findings to a wider audience, including possible Board debriefings.

### Implementation Plan — Overview and Monitoring
- Scope: Specific actions to address the three Board-endorsed recommendations; some actions already integrated into ongoing workstreams (TSR Action Plan, FY2016–18 Budget, ratification of 2010 Quota and Governance Reforms).
- Coordination: Implementation coordinated by SPR, in close collaboration with the Office of Budget and Planning; Risk Management Unit and groups working on economic and financial risk assessments; Legal and Finance departments; area and functional departments.
- Evaluation timeline:
  - Future PMRs to evaluate progress.
  - Interim implementation assessment of the TSR Action Plan in early 2017.
  - Comprehensive Surveillance Review in 2019.

### Recommendation 1 — Ensure sufficient resources (quotas, borrowing)
- Objective: Quotas sufficient to cover members’ needs under likely crisis scenarios, with borrowing arrangements to deal with tail risks.
- Actions and status:
  - 2010 Quota and Governance Reforms:
    - Continued work with the IMFC and other stakeholders to secure earliest ratification of the 2010 Reforms and completion of the 15th General Review of Quotas.
    - Executive Board initiated discussions in early 2015 on possible interim steps toward the objectives of the 2010 Reforms; work continues.
    - Timing of the 15th General Review of Quotas and a new quota formula will be determined taking into account progress on ratification and the deadline of December 15, 2015, established in the Articles of Agreement for this Review.
  - New Arrangements to Borrow (NAB):
    - Executive Board activated the NAB for a further six-month period from October 1, 2015 to March 31, 2016.
    - Additional activations will be considered in March and September, next year.
    - The Board will discuss renewal of the NAB in October 2016 (decision needs to be taken a year before expiration of current NAB in November 2017).
    - Once Quota reform comes into effect and the IMF has access to adequate resources, the NAB would be rolled back.
  - 2012 Borrowing Agreements:
    - Executive Board completed a review of borrowing guidelines in July 2015 and approved a further one-year extension of the 2012 Borrowing Agreements.
    - Most lenders, accounting for about 96 percent of the total amount under the approved 2012 agreements, have consented to this extension.
    - Further extensions beyond the current second extension are not contemplated in current modalities and would require amendments.
    - Board scheduled to discuss the future of the 2012 Borrowing Agreements and Review of Borrowing Guidelines in May 2016.
- Role: Provide supplemental resources after quotas and the NAB to handle potential tail risk scenarios.

### Recommendation 2 — Guidelines for engagement with other organizations
- Objective: Develop guidelines to clarify the IMF’s roles and accountabilities when engaging with other organizations, to protect institutional independence and ensure uniform treatment of members.
- Approach:
  - Multi-pronged and flexible: define broadly applicable principles while allowing adaptation to country-specific circumstances and respecting independence and differing mandates of partner organizations.
  - Principles and core responsibilities:
    - Fund’s role in collaborative technical assistance limited to its areas of expertise.
    - In co-financing operations, Fund retains sole responsibility for critical program components such as the macro-framework and debt sustainability analysis.
    - Cross-conditionally (where other institutions determine whether the country has met conditions for a Fund-supported program) is prohibited.
    - Early and effective communication to avoid confusion or misconceptions.
- Assessment and timing:
  - A comprehensive assessment of modalities of engagement with other organizations, including Regional Financing Arrangements, is warranted.
  - Board recently expressed limited appetite for more structured engagement with regional financing arrangements (per Stocktaking the Fund’s Engagement with Regional Financing Arrangements, 2013).
  - Staff will prepare a Board paper taking stock of IMF modalities and engagement with other organizations and making specific proposals as necessary in early 2017.

### Recommendation 3 — Consolidate and simplify risk and vulnerability framework (including EWE)
- Objectives:
  - Consolidate and simplify the current framework to identify and assess risks and vulnerabilities.
  - Make the Early Warning Exercise (EWE) more user-friendly, foster greater debate and input, and enhance outreach to authorities.
- Actions and status:
  - Simplifying and consolidating the risk framework:
    - 2015 Risk Report (prepared by the Risk Management Unit and discussed by the Board in July 2015) provided a first assessment of developments and capabilities that can impede near- and medium-term objectives, building on the risk management framework presented to the Executive Board in March.
    - The Report included a proposal for a Fund-wide stress test exercise to rationalize existing risk products and scenario analyses within an integrated and common framework to avoid duplication and minimize demands on area departments.
    - Executive Directors supported the new risk framework and called for stronger ownership and integration across departments, including alignment with strategic planning, accountability framework, and budget cycle.
    - Ongoing work to be shared regularly with the Executive Board (including annual discussion of the IMF’s Risk Management Report).
  - Efficiency gains:
    - SPR leading efforts to identify efficiencies between the IMF Risk Group, the Tail Risk group, the EWE team, and other groups working on economic and financial risk assessments.
    - This measure is part of the cross-cutting streamlining package approved as part of the FY2016–18 Budget.
    - Complementary actions from the MD’s TSR Action Plan: use the Global Policy Agenda as a short, integrated summary of the IMF’s views on global outlook and risks; proposals under the FY2016–18 Medium-Term Budget to streamline multilateral surveillance products.
  - Vulnerability Exercise transparency:
    - A note describing the Vulnerability Exercise methodology (system that measures and monitors key macro-financial risks, vulnerabilities, and observed trends) will be published.
    - Since January 2015 the G-RAM has been circulated to the Board.
  - Early Warning Exercise (EWE) briefings and outreach:
    - Given range of views among Executive Directors on wider dissemination, it is not proposed to enhance EWE outreach at this time.
    - Management will continue to explore ways to disseminate EWE information to the Board without compromising candor or access to confidential information, including through existing processes and Board discussions of other risk work.

### Recommendation 4 — FSAPs for largest systemic financial centers
- IEO recommendation: Update FSAPs annually for the world’s five to seven largest systemic financial centers in conjunction with IMF bilateral surveillance.
- Decision and alternative actions:
  - Most Executive Directors and the 2014 TSR do not support annual FSAP updates for the largest systemic centers.
  - Instead, focus on:
    - Fully embedding macro-financial analysis in Article IV surveillance in baseline projections and risk assessment.
    - Use of balance sheet analysis to explore linkages between the financial sector and other sectors.
    - Promoting uptake of user-friendly tools and effectively integrating financial sector issues into policy advice.
- Progress and follow-up:
  - Recent progress in the macro-financial workstream presented to the Board in May 2015; Board briefed in October 2015 on Mainstreaming Macro-Financial Surveillance with 24 country cases under way.
  - Interim implementation assessment of the TSR Action Plan in early 2017; Comprehensive Surveillance Review in 2019.

### Monitoring of implementation and accountability
- Evaluation vehicles:
  - Future PMRs will evaluate progress in implementing the proposed actions.
  - Interim implementation assessment of the TSR Action Plan in early 2017 to evaluate mainstreaming macro-financial analysis and collaboration on macro-critical structural issues.
  - Comprehensive Surveillance Review in 2019.
- Coordination and accountability:
  - SPR will coordinate MIP implementation in close collaboration with the Office of Budget and Planning (budget issues); Risk Management Unit and various risk-assessment groups (risk-related issues); Legal and Finance departments (quota and governance issues); and area and functional departments (mainstreaming macro-financial analysis).

### Resource implications for new initiatives
- Much of the resource costs for the new initiatives have already been factored in the FY2016–18 Medium-Term Budget.
- Around 45 FTEs are included for several larger initiatives that encompass most of the proposed actions.
- Specific budgeted FTEs and contingencies:
  - 2010 Quota and Governance reforms: around 9–10 FTEs; the cost is contingent on progress made in ratifying the reforms.
  - Mainstreaming macro-financial surveillance: 25 FTEs.
  - Simplifying and consolidating the risk framework (Risk Management Unit budget): 8 FTEs.
  - Preparing the Board paper on macro-structural issues: around 2 FTEs.
- Expected savings already included in FY2016–18 Medium-Term Budget:
  - Savings of 1.6–2 FTEs expected from efficiency gains in Fund-wide risk work.
- Future assessment and contingencies:
  - Resource costs of the proposed actions for next fiscal year will be assessed in time for the FY2017–19 Medium-term Budget.
  - Costs contingent on progress made in ratifying the quota and governance reforms and the experience gained from the pilot cases in mainstreaming macro-financial surveillance.
  - Additional resources will be needed to push forward the macro-structural workstream (around 2 FTEs).
  - Preparing the Board paper on stock-taking the IMF’s modalities and engagement with other organizations: around 2 FTEs.
  - Any extra costs associated with enhanced engagement and collaboration with other organizations will also have to be assessed in due course.

### Annex I — Selected follow-up (IEO recommendations, Board response, follow-up)
- Recommendation 1 follow-up highlights:
  - Executive Directors endorsed the recommendation and called on the United States to promptly ratify the 2010 Reforms.
  - Executive Board initiated discussions in early 2015 on possible interim steps; NAB activated from October 1, 2015 to March 31, 2016; Board to discuss renewal of the NAB in October 2016.
  - Review of borrowing guidelines completed in July 2015; Board approved a further one-year extension of the 2012 Borrowing Agreements; future of 2012 Borrowing Agreements to be discussed in May 2016.
  - Accountability: FIN, LEG, SPR in consultation with SEC.
- Recommendation 2 follow-up highlights:
  - Board paper on structural reforms (October 2015) provided initial considerations to leverage work by other institutions on macro-critical issues.
  - Staff to prepare Board paper on IMF’s modalities and engagement with other organizations in early 2017.
  - Accountability: SPR (in consultation with other departments).
- Recommendation 3 follow-up highlights:
  - 2015 Risk Report proposed a Fund-wide stress test exercise; SPR leading identification of efficiencies between risk-related groups.
  - A note describing the Vulnerability Exercise methodology will be published.
  - No enhancement of EWE outreach at this time; management to explore Board dissemination options without compromising candor or confidentiality.
  - Accountability: Risk Management Unit; SPR leading identification of efficiencies.
- Recommendation 4 follow-up highlights:
  - Most Directors saw limited merit in annual FSAP updates; focus on mainstreaming macro-financial surveillance in Article IV consultations.
  - Board briefed in October on Mainstreaming Macro-Financial Surveillance; 24 country cases under way.
  - Accountability: Area Departments in consultation with MCM, SPR and other functional departments; SPR to monitor progress as part of TSR Action Plan implementation.

*Source: EXECUTIVE SUMMARY — MIP in Response to IEO Evaluation of IMF Response to the Economic and Financial Crisis (pp120715-implementation-plan - EXECUTIVE SUMMARY).*

### EXECUTIVE SUMMARY

### pp120715-implementation-plan - EXECUTIVE SUMMARY

### Introduction
- Purpose: Management’s forward-looking implementation plan (MIP) in response to the Independent Evaluation Office (IEO) evaluation “IMF Response to the Financial and Economic Crisis.”
- Context: Executive Directors welcomed the evaluation; country authorities broadly supportive of post-crisis initiatives to strengthen macroeconomic and financial surveillance.
- Linkages: Many proposed actions are already underway as part of the 2014 Triennial Surveillance Report (TSR) Action Plan, the FY2016–18 Medium-Term Budget, and efforts to ratify the 2010 Quota and Governance Reforms.
- Monitoring: Progress will be monitored primarily through future Periodic Monitoring Reports (PMRs), updates on the TSR Action Plan (including an interim implementation assessment in early 2017), the Crisis Program Review, and follow-up work for other broader reviews of surveillance.

### IEO recommendations and Board reactions
- Four high-level IEO recommendations:
  - Ensure that the IMF, as a quota-based institution, has sufficient resources to contribute to future crisis resolution.
  - Develop guidelines for structuring engagements with other organizations, whether as a member or a partner.
  - Consolidate and simplify the current framework to identify and assess risks and vulnerabilities, including making the Early Warning Exercise (EWE) more user-friendly and enhancing outreach on its results.
  - Update annually the Financial Sector Assessment Programs (FSAPs) for the world’s five to seven largest systemic financial centers in conjunction with IMF’s bilateral surveillance.
- Board reaction:
  - Executive Directors broadly endorsed the first three recommendations.
  - Most Directors saw limited merit in the proposal to update FSAPs annually for the five to seven largest systemic centers, citing resource costs and the slow evolution of structural and institutional factors.
  - Directors supported guidelines defining broadly applicable principles of engagement with other organizations, subject to flexibility and pragmatism.
  - Diverging views on dissemination of EWE findings to a wider audience, including possible Board debriefings.

### Implementation Plan — Overview and monitoring
- Scope: Specific actions to address the three Board-endorsed recommendations; some actions already integrated into ongoing workstreams (TSR Action Plan, FY2016–18 Budget, ratification of 2010 Quota and Governance Reforms).
- Coordination: Implementation coordinated by SPR, in close collaboration with the Office of Budget and Planning; Risk Management Unit and groups working on economic and financial risk assessments; Legal and Finance departments; area and functional departments.
- Evaluation: Progress will be evaluated in future PMRs; interim implementation assessment of TSR Action Plan in early 2017; Comprehensive Surveillance Review in 2019.

### Recommendation 1 — Ensure sufficient resources (quotas, borrowing)
- Objectives:
  - Quotas should be sufficient to cover members’ needs under likely crisis scenarios, with borrowing arrangements to deal with tail risks.
- Actions and status:
  - 2010 Quota and Governance Reforms:
    - Continued work with the IMFC and other stakeholders to secure earliest ratification of the 2010 Reforms and completion of the 15th General Review of Quotas.
    - Executive Board initiated discussions in early 2015 on possible interim steps toward the objectives of the 2010 Reforms; work continues and will be completed as soon as possible.
    - Timing of the 15th General Review of Quotas and a new quota formula will be determined taking into account progress on ratification and the deadline of December 15, 2015, established in the Articles of Agreement for this Review.
  - New Arrangements to Borrow (NAB):
    - Executive Board activated the NAB for a further six-month period from October 1, 2015 to March 31, 2016.
    - Additional activations will be considered in March and September, next year.
    - The Board will discuss renewal of the NAB in October 2016 (decision needs to be taken a year before expiration of current NAB in November 2017).
    - Once Quota reform comes into effect and the IMF has access to adequate resources, the NAB would be rolled back.
  - 2012 Borrowing Agreements:
    - Executive Board completed a review of borrowing guidelines in July 2015 and approved a further one-year extension of the 2012 Borrowing Agreements.
    - Most lenders, accounting for about 96 percent of the total amount under the approved 2012 agreements, have consented to this extension.
    - Further extensions beyond the current second extension are not contemplated in current modalities and would require amendments.
    - Board scheduled to discuss the future of the 2012 Borrowing Agreements and Review of Borrowing Guidelines in May 2016.
- Role of these arrangements: Provide supplemental resources after quotas and the NAB to handle potential tail risk scenarios.

### Recommendation 2 — Guidelines for engagement with other organizations
- Objective: Develop guidelines to clarify the IMF’s roles and accountabilities when engaging with other organizations, to protect institutional independence and ensure uniform treatment of members.
- Approach:
  - Multi-pronged and flexible: Guidelines should define broadly applicable principles while allowing adaptation to country-specific circumstances and respecting independence and differing mandates of partner organizations.
  - Principles and core responsibilities:
    - Fund’s role in collaborative technical assistance limited to its areas of expertise.
    - In co-financing operations, Fund retains sole responsibility for critical program components such as the macro-framework and debt sustainability analysis.
    - Cross-conditionally (where other institutions determine whether the country has met conditions for a Fund-supported program) is prohibited.
    - Early and effective communication to avoid confusion or misconceptions.
  - Assessment and timing:
    - A comprehensive assessment of modalities of engagement with other organizations, including Regional Financing Arrangements, is warranted.
    - Board recently expressed limited appetite for more structured engagement with regional financing arrangements (per Stocktaking the Fund’s Engagement with Regional Financing Arrangements, 2013).
    - Such assessment will be most useful after internalizing lessons from the Crisis Program Review and follow-up on TSR recommendations (including leveraging work by other institutions on macro-critical structural issues).
    - Staff will prepare a Board paper taking stock of IMF modalities and engagement with other organizations and making specific proposals as necessary in early 2017.

### Recommendation 3 — Consolidate and simplify risk and vulnerability framework (including EWE)
- Objectives:
  - Consolidate and simplify the current framework to identify and assess risks and vulnerabilities.
  - Make the Early Warning Exercise (EWE) more user-friendly, foster greater debate and input, and enhance outreach to authorities.
- Actions and status:
  - Simplifying and consolidating the risk framework:
    - 2015 Risk Report (prepared by the Risk Management Unit and discussed by the Board in July 2015) provided a first assessment of developments and capabilities that can impede near- and medium-term objectives, building on the risk management framework presented to the Executive Board in March.
    - The Report included a proposal for a Fund-wide stress test exercise as a tool to rationalize existing risk products and scenario analyses within an integrated and common framework to avoid duplication and minimize demands on area departments.
    - Executive Directors supported the new risk framework and called for stronger ownership and integration across departments, including alignment with strategic planning, accountability framework, and budget cycle.
    - Ongoing work to be shared regularly with the Executive Board (including annual discussion of the IMF’s Risk Management Report).
  - Efficiency gains:
    - SPR leading efforts to identify efficiencies between the IMF Risk Group, the Tail Risk group, the EWE team, and other groups working on economic and financial risk assessments.
    - This measure is part of the cross-cutting streamlining package approved as part of the FY2016–18 Budget.
    - Complementary actions from the MD’s TSR Action Plan: use the Global Policy Agenda as a short, integrated summary of the IMF’s views on global outlook and risks; proposals under the FY2016–18 Medium-Term Budget to streamline multilateral surveillance products.
  - Vulnerability Exercise transparency:
    - A note describing the Vulnerability Exercise methodology (system that measures and monitors key macro-financial risks, vulnerabilities, and observed trends) will be published.
    - Since January 2015 the G-RAM has been circulated to the Board.
  - Early Warning Exercise (EWE) briefings and outreach:
    - Given range of views among Executive Directors on wider dissemination, it is not proposed to enhance EWE outreach at this time.
    - Management will continue to explore ways to disseminate EWE information to the Board without compromising candor or access to confidential information, including through existing processes and Board discussions of other risk work.

### Recommendation 4 — FSAPs for largest systemic financial centers
- IEO recommendation: Update FSAPs annually for the world’s five to seven largest systemic financial centers in conjunction with IMF bilateral surveillance.
- Decision and alternative actions:
  - Most Executive Directors and the 2014 TSR do not support annual FSAP updates for the largest systemic centers.
  - Instead, efforts will focus on:
    - Fully embedding macro-financial analysis in Article IV surveillance in baseline projections and risk assessment.
    - Use of balance sheet analysis to explore linkages between the financial sector and other sectors.
    - Promoting uptake of user-friendly tools and effectively integrating financial sector issues into policy advice.
  - Progress and follow-up:
    - Recent progress in the macro-financial workstream presented to the Board in May 2015; Board briefed in October 2015 on Mainstreaming Macro-Financial Surveillance with 24 country cases under way.
    - Interim implementation assessment of the TSR Action Plan in early 2017; Comprehensive Surveillance Review in 2019.

### Monitoring of implementation
- Evaluation vehicles:
  - Future PMRs will evaluate progress in implementing the proposed actions.
  - Interim implementation assessment of the TSR Action Plan in early 2017 to evaluate mainstreaming macro-financial analysis and collaboration on macro-critical structural issues.
  - Comprehensive Surveillance Review in 2019.
- Coordination and accountability:
  - SPR will coordinate MIP implementation in close collaboration with the Office of Budget and Planning (budget issues); Risk Management Unit and various risk-assessment groups (risk-related issues); Legal and Finance departments (quota and governance issues); and area and functional departments (mainstreaming macro-financial analysis).

*Source: EXECUTIVE SUMMARY — MIP in Response to IEO Evaluation of IMF Response to the Economic and Financial Crisis (pp120715-implementation-plan - EXECUTIVE SUMMARY).*

### 8.      Much of the resource costs for the new initiatives outlined above have already been

### pp120715-implementation-plan - 8.      Much of the resource costs for the new initiatives outlined above have already been

### Resource implications for new initiatives
- Much of the resource costs for the new initiatives have already been factored in the FY2016–18 Medium-Term Budget.
- Around 45 FTEs are included for several larger initiatives that encompass most of the proposed actions.
- Specific budgeted FTEs and contingencies:
  - 2010 Quota and Governance reforms: around 9–10 FTEs; the cost is contingent on progress made in ratifying the reforms.
  - Mainstreaming macro-financial surveillance: 25 FTEs.
  - Simplifying and consolidating the risk framework (Risk Management Unit budget): 8 FTEs.
  - Preparing the Board paper on macro-structural issues: around 2 FTEs.
- Expected savings already included in FY2016–18 Medium-Term Budget:
  - Savings of 1.6–2 FTEs expected from efficiency gains in Fund-wide risk work.
- Future assessment and contingencies:
  - Resource costs of the proposed actions for next fiscal year will be assessed in time for the FY2017–19 Medium-term Budget.
  - These costs will be contingent on the progress made in ratifying the quota and governance reforms and the experience gained from the pilot cases in mainstreaming macro-financial surveillance.
  - Additional resources will be needed to push forward the macro-structural workstream (around 2 FTEs).
  - Preparing the Board paper on stock-taking the IMF’s modalities and engagement with other organizations: around 2 FTEs.
  - Any extra costs associated with enhanced engagement and collaboration with other organizations will also have to be assessed in due course.

### Annex I — IEO Evaluation recommendations, Board response, follow-up (selected items)
- Recommendation 1: Ensure that the IMF, as a quota based institution, has sufficient resources to contribute to future crisis resolution
  - Executive Directors endorsed the recommendation and called on the United States to promptly ratify the 2010 Reforms.
  - Follow-up actions and status:
    - Executive Board initiated discussions in early 2015 on possible interim steps toward the objectives of the 2010 Reforms; work continues.
    - Timing of work on the 15th General Review of Quotas and on a new quota formula will be determined, taking into account progress made in ratifying the 2010 reforms.
    - Executive Board activated the NAB for a further six-month period from October 1, 2015 to March 31, 2016; additional activations will be considered in March and September next year.
    - The Board will discuss the renewal of the NAB in October 2016.
    - A review of the current borrowing guidelines was completed by the Executive Board in July 2015.
    - The Board approved a further one-year extension of the 2012 Borrowing Agreements.
    - The Board is scheduled to discuss the future of the 2012 Borrowing Agreements and Review of Borrowing Guidelines in May 2016.
  - Accountability: FIN, LEG, SPR in consultation with SEC are responsible for preparing reports and organizing Executive Board, IMFC, and Board of Governors meetings.

- Recommendation 2: Develop guidelines for structuring engagements with other organizations, whether as a member or a partner
  - Executive Directors generally supported development of broadly applicable principles while remaining flexible and pragmatic.
  - Follow-up actions:
    - A Board paper on structural reforms (October 2015) provided initial considerations to better leverage work by other institutions on macro-critical issues.
    - Staff will prepare a Board paper that takes stock of the IMF’s modalities and engagement with other organizations, including Regional Financing Arrangements, and makes any specific proposals for change deemed necessary in early 2017.
  - Accountability: SPR (in consultation with other departments) is in charge of moving this agenda. SPR is responsible for the follow-up.

- Recommendation 3: Consolidate and simplify the current framework to identify and assess risks and vulnerabilities, including making the EWE more user-friendly and enhancing outreach on its results
  - Executive Directors broadly endorsed consolidation and simplification; expressed a range of views on disseminating EWE findings to a wider audience and cautioned against compromising candor or access to confidential information.
  - Follow-up actions and status:
    - The 2015 Risk Report included a proposal for a Fund-wide stress test exercise to rationalize existing risk products and scenario analyses within an integrated common framework to avoid duplication and minimize demands on area departments.
    - Staff, led by SPR, is in the process of identifying efficiencies between the IMF Risk Group, the Tail Risk Group and the EWE team, and other groups working on economic and financial risk assessments.
    - To enhance transparency, a note describing the Vulnerability Exercise methodology will be published, presenting the broad contours of the exercise.
    - Given the range of views on disseminating EWE findings, it is not proposed to enhance the outreach of the EWE at this time; management will continue to explore ways to disseminate EWE information to the Board without compromising candor or access to confidential information, including Board discussions of the Fund’s other risk work.
  - Accountability: Risk Management Unit; SPR leading identification of efficiencies.

- Recommendation 4: Update annually the FSAPs for the world’s five to seven largest systemic financial centers in conjunction with IMF’s bilateral surveillance
  - Most Directors saw limited merit in the IEO recommendation and instead looked forward to forthcoming proposals to mainstream macro-financial surveillance.
  - Follow-up actions and status:
    - The 2014 TSR Action Plan proposes measures to fully embed macro-financial analysis in Article IV surveillance, including through balance sheet analysis and promoting uptake of user-friendly tools.
    - The Board was briefed in October on Mainstreaming Macro-Financial Surveillance, describing the continuing Fund-wide effort to strengthen coverage of macro-financial issues in bilateral surveillance and discussed the experience with 24 country cases under way.
  - Accountability: Area Departments in consultation with MCM, SPR and other functional departments will be responsible for mainstreaming macro-financial analysis in Article IV consultations. SPR will monitor progress as part of implementation of the 2014 TSR Action Plan. SPR and MCM prepared the Board briefing.

*Source: pp120715-implementation-plan - 8.      Much of the resource costs for the new initiatives outlined above have already been*

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_Source: https://www.imf.org/-/media/files/publications/pp/pp120715-implementation-plan.pdf_