Treasury Management for Governments

A sound risk monitoring and control environment should exist in the debt management unit.  What are these risks and can they be minimized in some way through proper debt issuance policies?

Borrowing safely.  How can a country follow the middle path that will take it through the hazards of excessive debt service, currency stress, and macroeconomic risks?

Contingent liabilities may be thought of as a put option that the government has written and is held by another party.  These contingent claims may become overly burdensome.  Their danger lies in their potential which is generally unfelt until it is activated.

Risk mitigation.  Steps that might be taken to reduce risk. 

Risk mathematics.  Risk is a probabilistic phenomenon.  Assessment of risk, therefore, depends upon the distribution of outcomes that is assumed.  There are several ways of measuring risk.  Each has some problems with interpretation and how mitigation works.

Risk and debt.  What are the types of risk confronting the debt manager?

To Read Further ... 

The nature of risk

Sustainable borrowing

Contingent liabilities

Praxis: Debt -  Risk, mitigation and sustainability