Welcome

We are pleased to welcome you as a participant in a new training course in sovereign risk management. The theme is 'Fiscal Stability through Risk Financing – financial tools for governments to cope with the economic consequences of natural disasters, shortfalls in agricultural production and other contingent liabilities'. It underpins the challenges that the public sector, particularly in middle- and low-income countries, encounters in managing public debt and other financial risks.

You will join a select group of government officials and practitioners from the private and public sectors from around the world. Participation in the course will result in an increased awareness and improved understanding of the basic concepts of risk management, risk financing and the different roles of the public and private sectors in sharing risks.

SECO and Swiss Re look forward to welcoming you to Rüschlikon in August to participate in this event.

About the event

Abstract

The costs of natural disasters and other risks represent a growing burden for governments and societies in developing and emerging countries. Earthquakes, droughts, floods, cyclones and other natural catastrophes impact over 200 million people every year. Climate change, combined with population growth, could put at risk many more. As recent disasters showed, emerging and developing countries are particularly vulnerable to these events. Despite a growing trend towards more insurance coverage for catastrophic losses, the amount of uninsured losses is nonetheless growing faster. As a consequence, governments have to act as insurers of last resort and absorb large portions of these losses, increasing the financial burden on public finances and compromising longer term fiscal balances.

Governments are increasingly concerned about the costs of these risks and have started to take a closer look at new forms of risk financing. To date, most governments finance the costs of natural disasters ex post, that is after an event occurred, for instance through raising taxes, borrowing more, or reallocating budget. However, this comes with significant disadvantages, as associated political processes are challenging, the burden of debt increases in times of stress, and important long-term investments in health or education may suffer. This situation is particularly difficult in emerging and developing countries because fiscal space is more constrained. As a result, more and more governments have started to take a closer look at new forms of ex ante risk financing, where funds are secured prior to a disaster and budget volatility is reduced. These ex ante financing mechanisms range from risk retention, contingent credit lines to innovative public-private transactions through which risk is transferred to third parties such as capital markets or insurance companies. A prerequisite of ex ante financing is a better understanding of sovereign risk management, risk financing and the role of the private sector in sharing risks.

The Swiss State Secretariat for Economic Affairs (SECO) and Swiss Reinsurance Company Ltd (Swiss Re) have teamed up to deliver a course which responds to these growing concerns and bridges the existing knowledge gap.

Topics to be covered

• Natural disaster risk financing and risk assessments
• Agriculture risk financing
• Life and health risk financing

Target audience

The course is tailored for decision-making practitioners and professionals in the field of sovereign finance and fiscal risk management. Participants will be 15-20 senior officials from finance ministries, relevant sector ministries or regulatory agencies, such as department heads, senior technical staff with solid experience in government finance and risk management.

Note: This event may be photographed, filmed and /or recorded. A summary of the event, pictures and/or a video of the event in which you may appear may be posted and made available on Swiss Re’s and the Centre's internal and external websites and in printed materials.

Agenda

General information