Operational risk is defined as the risk of financial loss in connection with errors in internal processes, human errors, system errors or losses due to external events (BIS 2003).
Operational risk is minimised by applying a number of measures:
- Government Debt Management is divided into front, middle and back offices with clearly separated functions
- Only standardised, well-known financial instruments are used
- The procedures of Government Debt Management are subject to electronic review and approval in a defined workflow.
- Legal risk is minimised by exclusively using standardised contracts
In the event of notable disturbances or system failures Government Debt Management has an emergency second site, from which essential activity can be continued.