Professional Development Course: Advanced Techniques in Reserve Management and Risk Assessment

Embarking on a journey through the intricate landscape of reserve management and risk assessment, this course delves into the core processes essential for identifying, measuring, evaluating the likelihood of, and prioritizing risks inherent in reserves management. Participants will immerse themselves in a collaborative learning environment, exchanging insights on operational risk management frameworks and discussing how internal audit functions leverage these frameworks to scrutinize risks and controls effectively.

Course Objectives

Equip participants with the knowledge to implement a comprehensive risk-based auditing approach.
Explore reserve management services and strategies.
Evaluate the level and sufficiency of foreign reserves.
Analyze financial instruments utilized in reserve management.
Delve into portfolio management techniques.
Examine investment guidelines and strategic benchmarking.
Address market and credit risk control measures.
Understand performance measurement methodologies.
Course Structure

Day 1:
Significance of Reserve Management

• Upholding confidence in monetary and exchange rate policies.
• Safeguarding against external vulnerabilities through foreign currency liquidity.
• Ensuring the ability to meet external obligations.
• Backing domestic currency with external assets.
• Supporting government foreign exchange needs and debt obligations.
• Maintaining reserves for national emergencies.

Day 2:
Guiding Principles

• Objectives, Scope, and Coordination of Reserve Management.
• Emphasizing Transparency and Accountability.
• Establishing a Robust Institutional Framework.
• Legal Foundations Underpinning Reserve Management.
• Internal Governance Structures.

Day 3:
Risk Management Framework

• Disclosures of Foreign Reserves in line with Fund Standards and Codes.
• Adherence to Good Practices on Transparency in Financial Policies.
• Compliance with the Special Data Dissemination Standard (SDDS).
• Clarification of roles, responsibilities, and objectives of financial agencies in reserve management.

Day 4:
Transparency and Reporting

• Disclosure of official foreign exchange reserves information.
• Timely and comprehensive data dissemination.
• Submission of data to the Fund for monitoring purposes.
• Ensuring accountability and integrity in reserve management agencies.
• Insights from Auditors on the Foreign Exchange Management Act (FEMA).

Day 5:
External Market-Based Risks

• Mitigating Liquidity, Credit, Currency, and Interest Rate Risks.
• Safeguarding against Control System Failures.
• Addressing Risks of Financial Misstatements and Errors.
• Protecting Potential Income Streams.
• This intensive course amalgamates theoretical frameworks with practical applications, aiming to equip participants with the acumen to navigate the intricate terrain of reserve management and risk assessment with confidence and precision.