Magnusson, TomasPrasad, AbhaStorkey, Ian2017-08-152017-08-152010-03https://hdl.handle.net/10986/27822Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. In debt management operations, the categories of risks, such as market risk, credit risk, refinancing risk and liquidity risk, are relatively well known; however operational risk is not. The area has not been given due attention to by government debt managers in developing a risk management framework. A similar conclusion on aspects pertaining to operational risk management is borne out from the early results of the World Bank's assessments using its government Debt Management Performance Assessment (DeMPA) tool. This paper thus, introduces the concepts of operational risk as applied to government debt management (DeM) and attempts to present a framework for debt managers to manage operational risks while undertaking public debt management operations. It draws on existing literature for operational risk management principles and practices that have been formulated by the Bank for International Settlements (BIS) Basel Committee on Banking Supervision, the Committee of Sponsoring Organizations (COSO) and the findings of the DeMPAs.en-USCC BY 3.0 IGOASSURANCEAUDIT COMMITTEEAUDITORSBANKING SECTORBANKRUPTCYBORROWINGBUSINESS ENVIRONMENTBUSINESS RISKCASH BALANCECASH FLOWCATASTROPHESCENTRAL BANKCENTRAL GOVERNMENT DEBTCODE OF CONDUCTCOLLATERALCOMMERCIAL LOANSCONFLICT OF INTERESTCONTRACTUAL OBLIGATIONSCOVERAGECREDIT RISKCREDIT RISKSDEBT DATADEBT MANAGEMENTDEBT PAYMENTSDEBT SERVICEDERIVATIVESDEVELOPING COUNTRIESDISASTERSDOMESTIC MARKETDRIVERSEFFICIENT MARKETEQUIPMENTEXCHANGE RATEEXPOSUREEXTERNAL BORROWINGFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL PORTFOLIOFINANCIAL SECTORFINANCIAL STATEMENTSFINANCIAL TRANSACTIONSFISCAL POLICYFOREIGN BANKSFRAUDGOVERNMENT DEBTGOVERNMENT SECURITIESHUMAN RESOURCEHUMAN RESOURCESINADEQUATE SUPERVISIONINCOMEINFORMATION FLOWSINSURANCEINTEREST RATEINTEREST RATE RISKINTERNAL AUDITINTERNAL CONTROLINTERNATIONAL SETTLEMENTSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL RISKLIQUIDITYLIQUIDITY RISKLIQUIDITY RISKSLOANLOAN AGREEMENTSLOAN GUARANTEESLOCAL GOVERNMENTLOCAL GOVERNMENTSMACROECONOMIC POLICIESMANAGEMENT OPERATIONSMARKET BORROWINGMARKET CONFIDENCEMARKET FOR GOVERNMENT SECURITIESMARKET PARTICIPANTSMARKET RISKMATURITYMITIGATIONMONETARY POLICYOPERATIONAL RISKOPERATIONAL RISKSOUTPUTSOUTSOURCINGPORTFOLIOPOWER OUTAGESPRIMARY DEALERSPRIVATE SECTORPUBLIC DEBTPUBLIC DEBT MANAGEMENTREGULATORY CAPITALREPUTATIONREPUTATION RISKRESIGNATIONRISK ASSESSMENTRISK EXPOSURERISK EXPOSURESRISK MANAGEMENTRISK MANAGEMENT POLICIESRISK MANAGEMENT STRATEGIESRISK PROFILERISK PROFILESSAFETYSCANDALSEGREGATION OF DUTIESSOVEREIGN DEBTSUPPLIERSSWAPSWAPSTERRORISMTRADINGTRANSACTIONReportWorld Bank10.1596/27822