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
Publication orders may be placed online, by fax, or through the mail:
International Monetary Fund, Publication Services
P.O. Box 92780, Washington, DC 20090, U.S.A.
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E-mail: publications@imf.org
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) |
Emre Balibek is a Senior Economist at the Fiscal Affairs Department, IMF. Ian Storkey and H. Hakan Yavuz are independent consultants.
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).