1. Risk Management in Treasury Operations
Group 1
Risk Management in Treasury Operations
Armenia, Belarus, Kazakhstan, Kirgizstan, Moldova, and Russia
Vienna, May 31, 2017

2. 1.1. Is risk management part of regular responsibilities of any of the functions / units of the treasury in your country?
Risk management is a management function in all countries, although in many of them it is not formalized nor captured in job descriptions
Russia and Moldova – risk management is captured in the job description of certain positions and units in charge of improving internal public financial control
Аrmenia – Risk Strategy and Management Unit in the Debt Management Department

3. 1.2. Was formal risk analysis / assessment undertaken for any of the treasury functions / processes? If yes, specify the functions / processes and context of the analysis. Is this a regular / periodic activity or a one – time undertaking?
- Russia and Kazakhstan – carry out an annual update of the classifier, a quarterly risk review, and an update of the internal control map
Moldova carries out quarterly risk assessment and register update

4. 1.3. Does your treasury have internal documents / methodology that define approaches to risk management? If yes, specify the documents.
- Russia has for treasury risk management concept in place, an external risk register, a joint working group with the Chamber of Accounts, an internal treasury policy on risk management, and a risk classifier
Kazakhstan is designing an instruction on Treasury Risk Management
Moldova has a risk register in place and uses a manual on risk analysis

5. Armenia – green corridor for extrabudgetary funds
2. Do you consider that the concept of the “green corridor” could work in your countries?
- Kazakhstan and Russia have already implemented the green corridor arrangement (known as automatic authorization in Russia)
Armenia – green corridor for extrabudgetary funds
Belarus and Moldova – differentiation of control levels
Kirgizstan is considering the possibility of implementing it

6. 2. Do you consider that the concept of the “green corridor” could work in your countries? Benefits/risks/mitigation of risks
Benefits
- Easing the staff work load
- Acceleration of payments
- Better services quality
Risks
- Shortage of liquidity
- Quality of liquidity planning and forecasting
- Does not rule out violations, detection mechanism not clear
Prerequisites
- Division of responsibilities
- Authorization mechanism, interaction with controlling authorities
- Regulatory framework
- Criteria
- Information system