Front Matter

Title Page

TECHNICAL NOTES AND MANUALS

Business Continuity Planning for Government Cash and Debt Management

Prepared by Emre Balibek, Ian Storkey, and H. Hakan Yavuz

Business continuity planning is a critical part of government cash and debt management to ensure efficient and timely delivery of government services. Yet, many countries struggle to put in place an adequate business continuity plan (BCP) that covers government cash and debt management functions. This technical note and manual (TNM) aims to provide guidance on the steps that countries can follow to address this shortcoming. In doing so, it addresses the following issues:

  • How can government cash and debt management units develop and implement a practical business continuity plan (BCP)?

  • How can the process of developing a BCP be simplified economizing the use of resources?

  • How has the nature of the business disruption risks and the landscape faced by cash and debt management evolved over the last decade? What solutions have emerged to maintain business continuity?

  • How has the recent COVID-19 pandemic affected business continuity planning?

By focusing on the above questions, the TNM updates approach presented in the IMF TNM 1105 on “Operational Risk Management and Business Continuity Planning for Modern State Treasuries.”

Copyright Page

Copyright ©2021 International Monetary Fund

Fiscal Affairs Department

Business Continuity Planning for Government Cash and Debt Management

Prepared by Emre Balibek, Ian Storkey, and H. Hakan Yavuz1*2

DISCLAIMER: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this paper are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

JEL Classification Numbers: H63, H1, H12

Keywords: Business continuity planning, business impact analysis, operational risk management

Author’s E-Mail Address: ian@storkeyandco.com, hknyvz@gmail.com, ebalibek@imf.org

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Contents

  • I. Introduction

  • II. BCP within an Operational Risk Management Framework

  • III. The Evolving Nature of Threats and Solutions for Cash and Debt Management

  • IV. A Practical Approach to Developing a Business Continuity Plan

  • V. Conclusion

  • Annexes

  • Annex I. BCP Template

  • Annex II. Business Impact Analysis Methodology

  • Annex III. Process Analysis Template/Example

  • Annex IV. Incident Management Team

  • Annex V. Pocket Card

  • Annex VI. Scenario and Simulated Live Tests

  • References

Acronyms

ANAO

Australian National Audit Office

AOFM

Australian Office of Financial Management

BCM

Business Continuity Management

BCP

Business Continuity Plan

BIA

Business Impact Analysis

BNM

Bank Negara Malaysia

BPA

Business Process Analysis

CAT

Catastrophe (Bonds)

COVID-19

Corona Virus Disease

DeMPA .

Debt Management Performance Assessment

DRFI

Disaster Risk Financing and Insurance

DRP

Disaster Recovery Plan

FEMA

Federal Emergency Management Agency

ICT

Information and Communication Technology

IFMIS

Integrated Financial Management Information System

IGCP

Agenda de Gestao da Tesouraria e da Dfvida Publica (Portuguese Treasury and Debt Management Agency)

IMF

International Monetary Fund

IMT

Incident Management Team

ISO

International Standards Organization

IT

Information Technology

MoF

Ministry of Finance

MTPD

Maximum Tolerable Period of Disruption

PC

Personal Computer

RTO

Recovery Time Objective

SaaS

Software-as-a-Service

SCDIs

State-Contingent Debt Instruments for Sovereigns

STP

Straight-through-Processing

TNM

Technical Note and Manual

VPN

Virtual Private Network

WPDM

Working Party on Public Debt Management (OECD)

1

Emre Balibek is a Senior Economist at the Fiscal Affairs Department, IMF. Ian Storkey and H. Hakan Yavuz are independent consultants.

2

This note has benefrtted from contributions and comments from Cristina Casalinho, Chairman of the Board of Directors of the Portuguese Treasury and Debt Management Agency (IGCP), David Duarte (IGCP), Juan Luis Diez Gibson (Spanish Embassy at Bern), Andre Proite (the World Bank), Richard Allen, Alok Kumar Verma, Sandeep Saxena, Yasemin Hurcan, Peter Lindner, Hassan Adan, and Tee Koon Hui (IMF).

Business Continuity Planning for Government Cash and Debt Management
Author: Mr. Emre Balibek, Ian Storkey, and Hakan Yavuz