Sovereign Liability And Risk Management Principles And Practices (SLRM)

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Presented by the IMF Monetary and Capital Markets Department.
Intended to broaden participants’ understanding of main policy and operational issues in sovereign risk management, techniques used for active debt operations and debt market development, and sustained capital market access.
Emphasis is given to the risk measurement of a bonded debt portfolio in the context of a sovereign’s overall balance sheet (assets and liabilities).
Specific focus on lessons from the global financial and economic crisis for managing sovereign risk, public debt, and the interface with capital markets and financial stability.

Effective organizational arrangements for sovereign liability and risk management.
Coordination with key policy areas, including monetary and fiscal policy.
Building blocks for a framework for sovereign liability management, including objectives and identification of risks, and accountability.
Technical and operational aspects of risk management.
Identifying and monitoring sovereign risk, and good principles for stress testing a sovereign debt portfolio.
Measuring key portfolio risks, including currency, interest rate, and refinancing exposures.
Technical and implementation aspects of developing a medium-term debt management strategy.
Formulating debt issuance strategies taking account of the link between debt management and debt sustainability analysis.

Target audience:
- Mid-level to senior debt managers, central bankers, and related officials with policy and operational responsibilities relating to monitoring and managing sovereign liabilities, debt, and the development and functioning of domestic debt markets.
Qualifications:
- Participants should have a degree in economics or finance.
- A background in accounting and finance, along with familiarity with debt sustainability analysis, debt management, and debt market operations, is desirable.

Upon completion of the course, participants should be able to:

Identify building blocks for a framework for sovereign liability management, including objectives and identification of risks and accountability.
Identify good principles for stress testing a sovereign debt portfolio and monitor sovereign risk.
Measure key portfolio risks, including currency, interest rate, and refinancing exposures.
Describe technical and implementation aspects of developing a medium-term debt management strategy.
Formulate debt issuance strategies taking account of the link between debt management and debt sustainability analysis.