Contingent liabilities pose an increasing risk to destabilising a government’s public finances. As ministries of finance develop their public debt management capabilities, an important consideration is the role of the middle office in managing contingent risks. This policy dialogue provided risk managers with an opportunity to share their experiences on challenges they have faced, the lessons they have learnt and the good practices they are striving to implement. The programme was structured around the following five aspects of contingent liability management:
(i) understanding the costs;
(ii) establishing a robust regulatory and policy framework;
(iii) building an enabling institutional environment;
(iv) proactively managing the application, assessment, approval, recording and monitoring processes; and,
(v) instituting comprehensive disclosure and reporting requirements.