Country Risk Management

Policies and Procedures for Managing Country Risk

Bank management is responsible for implementing sound, well-defined policies and procedures for managing country risk that:

• Establish risk tolerance limits;

• Delineate clear lines of responsibility and accountability for country risk management decisions;

• Specify authorized activities, investments, and instruments; and

• Identify both desirable and undesirable types of business.

Management should also ensure that country risk management policies, standards, and practices are clearly communicated to the affected offices and staff.

Previous: Oversight by the Board of Directors Next: Country Exposure Reporting System