Presented at the 4th Global Infrastructure Basel Summit 21 & 22 May 2014. Read more at www.gib-foundation.org.
Next Summit: 27 & 28 May 2015 in Switzerland
Political Risk - Meaning,types,evaluation and its management by Mansi Gupta of Institute of Management Studies , Kurukshetra University , Kurukshetra (MBA-5 Year)
Terrorism Risk Captives - Comments to TreasuryJasonSchupp1
Every two years U.S. Treasury reports to Congress on the effectiveness of the Terrorism Risk Insurance Program. Treasury’s 2018 report revealed the outsized role captive insurance companies play in the program. For example, we learned:
• At least 500 captives participate in the program, although “Treasury does not have a comprehensive U.S. captive count”;
• Captives account for 23% of the all US terrorism premiums earned despite representing only 4% of the total commercial property and casualty insurance market; and
• Captives would receive about 95% of all payouts from the federal backstop under a hypothetical truck bomb attack in Chicago.
As explained in the attached comments to Treasury, the 2020 Report should build on this analysis to quantify the serious risks terrorism insurance captives present to:
• The integrity of the program;
• The assets of regular policyholders such as churches, charities, schools and small businesses that cannot afford to set up their own insurance companies; and
• Funding for the care of victims of NBCR terrorist attacks and the families left behind.
The attached also proposes a public listing of participating insurers with basic information so Congress and those put at risk can better understand these risks and hold the corporations creating them to account.
Presented at the 4th Global Infrastructure Basel Summit 21 & 22 May 2014. Read more at www.gib-foundation.org.
Next Summit: 27 & 28 May 2015 in Switzerland
Political Risk - Meaning,types,evaluation and its management by Mansi Gupta of Institute of Management Studies , Kurukshetra University , Kurukshetra (MBA-5 Year)
Terrorism Risk Captives - Comments to TreasuryJasonSchupp1
Every two years U.S. Treasury reports to Congress on the effectiveness of the Terrorism Risk Insurance Program. Treasury’s 2018 report revealed the outsized role captive insurance companies play in the program. For example, we learned:
• At least 500 captives participate in the program, although “Treasury does not have a comprehensive U.S. captive count”;
• Captives account for 23% of the all US terrorism premiums earned despite representing only 4% of the total commercial property and casualty insurance market; and
• Captives would receive about 95% of all payouts from the federal backstop under a hypothetical truck bomb attack in Chicago.
As explained in the attached comments to Treasury, the 2020 Report should build on this analysis to quantify the serious risks terrorism insurance captives present to:
• The integrity of the program;
• The assets of regular policyholders such as churches, charities, schools and small businesses that cannot afford to set up their own insurance companies; and
• Funding for the care of victims of NBCR terrorist attacks and the families left behind.
The attached also proposes a public listing of participating insurers with basic information so Congress and those put at risk can better understand these risks and hold the corporations creating them to account.
Euro Dissolution Panel Discussion: Giving Treasury the Tools to Take the LeadHedgeTrackers
Panel Discussion was presented at Peninsula Treasury Management Association Monthly Luncheon. The following presented: Helen Kane, President, Hedge Trackers; Laura Langone, Director Global Risk Management, Juniper Networks; Guillermo Gualino, Assistant Treasurer, Agilent Technologies; Tamara Anthony, Director of Treasury, Lam Research.
They discussed the risk factors and the due diligence performed by your treasury peers to address the possibility of one or multiple countries defecting from the Euro. All areas of treasury are contemplated including operational cash management, currency hedge programs, counter-party risk and enterprise risk. We will also discuss how other treasury groups and peer organizations are raising awareness, how best to educate senior management and how to identify potential tax and legal implications.
During a seminar on Thursday, February 8, 2018, Isaac Anthony, CEO, CCRIF SPC updated staff of the Caribbean Development Bank (CDB) on the role of the Facility and its performance since inception. He shared some of the key strategies and instruments being pursued for expansion, which include extending insurance products during the 2018-2019 policy year to include drought as well as its on-going work with partners to develop products for the fisheries and agriculture sectors.
Following the particularly devastating 2017 Atlantic Hurricane Season, CCRIF SPC announced that payouts surpassed USD130 million (mn) since its inception. In 2017, CCRIF SPC made payments of approximately USD1.5 mn, which includes USD30.8 mn for Hurricane Irma and USD23.6 mn for Hurricane Maria. Countries which received payouts included: Anguilla, Antigua and Barbuda, The Bahamas, Dominica, Haiti and the Turks and Caicos Islands. Following a period of heavy rainfall between October 18 and 20 2017 Trinidad and Tobago received a payout of approximately USD7.1mn on its Excess Rainfall policy. Each payout was made within 14 days of the event.
In 2007, CCRIF SPC became the world’s first multi-country risk pool. Created to assist Caribbean governments with recovery efforts in the immediate aftermath of a disaster, the Facility opened membership to Central American countries in 2015. Now CCRIF SPC includes 16 Caribbean members and Nicaragua.
Click to view the presentation by CCRIF SPC's CEO.
The financial crisis and the ensuing volatility in the global economy and capital markets have challenged traditional wisdom about the risks associated with investing. More than ever, there is now a pressing need for investors to have a clear idea of the risks they are taking, as that can influence the amounts invested, the asset classes targeted and the specific products selected.
This report considers what investment risk is and how it can be measured, specifically addressing questions such as how investors assess their own risk appetite, what constitutes low and high risk exposure and the extent to which investors appreciate the connection between risk and return. It splits the respondents into financial advisers, corporate investors and high net worth individual investors to examine more closely issues specific to each of these groups.
White paper sponsored by Goldman Sachs.
The system of organized lending can never run out of risks. Be market, liquidity, credit, interest or operational, risk is inevitable for banks and other financial firms.
Hence, a primary importance is given to risk profiling in all financial institutions.
One of the omnipresent risks that have taken a toll on banks regularly is credit risk. In simplest terms, this risk can be defined as non repayment of a loan as per agreed conditions, to the lender, thus ruining the lender’s investment.
The non repayment can be intentional (willful default), due to failure of an industry (systemic risk), failure of cross currency settlement (settlement risk) etc.
In this article, we are going to explore credit risk. We will discuss its basic meaning, types, causes, effects and how banks all over the world have made attempts to monitor, mitigate, transfer and at times, accept the risk.
Cambodia: Sharing the benefits of sustained growthOECDglobal
This presentation was presented by H.E. Dr. Kantha Phavi ING, Minister, Ministry of Women's Affairs, Cambodia, at the OECD Southeast Asia Regional Forum, held March 25-26 in Bali, Indonesia.
Women in Business: Policies to support women entrepreneurship development in ...OECDglobal
Presented at the July 2012 Meeting of the OECD-MENA Initiative's Working Group on SME Policy, Entrepreneurship and Human Capital Development http://www.oecd.org/mena/investment
Euro Dissolution Panel Discussion: Giving Treasury the Tools to Take the LeadHedgeTrackers
Panel Discussion was presented at Peninsula Treasury Management Association Monthly Luncheon. The following presented: Helen Kane, President, Hedge Trackers; Laura Langone, Director Global Risk Management, Juniper Networks; Guillermo Gualino, Assistant Treasurer, Agilent Technologies; Tamara Anthony, Director of Treasury, Lam Research.
They discussed the risk factors and the due diligence performed by your treasury peers to address the possibility of one or multiple countries defecting from the Euro. All areas of treasury are contemplated including operational cash management, currency hedge programs, counter-party risk and enterprise risk. We will also discuss how other treasury groups and peer organizations are raising awareness, how best to educate senior management and how to identify potential tax and legal implications.
During a seminar on Thursday, February 8, 2018, Isaac Anthony, CEO, CCRIF SPC updated staff of the Caribbean Development Bank (CDB) on the role of the Facility and its performance since inception. He shared some of the key strategies and instruments being pursued for expansion, which include extending insurance products during the 2018-2019 policy year to include drought as well as its on-going work with partners to develop products for the fisheries and agriculture sectors.
Following the particularly devastating 2017 Atlantic Hurricane Season, CCRIF SPC announced that payouts surpassed USD130 million (mn) since its inception. In 2017, CCRIF SPC made payments of approximately USD1.5 mn, which includes USD30.8 mn for Hurricane Irma and USD23.6 mn for Hurricane Maria. Countries which received payouts included: Anguilla, Antigua and Barbuda, The Bahamas, Dominica, Haiti and the Turks and Caicos Islands. Following a period of heavy rainfall between October 18 and 20 2017 Trinidad and Tobago received a payout of approximately USD7.1mn on its Excess Rainfall policy. Each payout was made within 14 days of the event.
In 2007, CCRIF SPC became the world’s first multi-country risk pool. Created to assist Caribbean governments with recovery efforts in the immediate aftermath of a disaster, the Facility opened membership to Central American countries in 2015. Now CCRIF SPC includes 16 Caribbean members and Nicaragua.
Click to view the presentation by CCRIF SPC's CEO.
The financial crisis and the ensuing volatility in the global economy and capital markets have challenged traditional wisdom about the risks associated with investing. More than ever, there is now a pressing need for investors to have a clear idea of the risks they are taking, as that can influence the amounts invested, the asset classes targeted and the specific products selected.
This report considers what investment risk is and how it can be measured, specifically addressing questions such as how investors assess their own risk appetite, what constitutes low and high risk exposure and the extent to which investors appreciate the connection between risk and return. It splits the respondents into financial advisers, corporate investors and high net worth individual investors to examine more closely issues specific to each of these groups.
White paper sponsored by Goldman Sachs.
The system of organized lending can never run out of risks. Be market, liquidity, credit, interest or operational, risk is inevitable for banks and other financial firms.
Hence, a primary importance is given to risk profiling in all financial institutions.
One of the omnipresent risks that have taken a toll on banks regularly is credit risk. In simplest terms, this risk can be defined as non repayment of a loan as per agreed conditions, to the lender, thus ruining the lender’s investment.
The non repayment can be intentional (willful default), due to failure of an industry (systemic risk), failure of cross currency settlement (settlement risk) etc.
In this article, we are going to explore credit risk. We will discuss its basic meaning, types, causes, effects and how banks all over the world have made attempts to monitor, mitigate, transfer and at times, accept the risk.
Cambodia: Sharing the benefits of sustained growthOECDglobal
This presentation was presented by H.E. Dr. Kantha Phavi ING, Minister, Ministry of Women's Affairs, Cambodia, at the OECD Southeast Asia Regional Forum, held March 25-26 in Bali, Indonesia.
Women in Business: Policies to support women entrepreneurship development in ...OECDglobal
Presented at the July 2012 Meeting of the OECD-MENA Initiative's Working Group on SME Policy, Entrepreneurship and Human Capital Development http://www.oecd.org/mena/investment
Pocketbook: Competitiveness in South East Europe 2018OECDglobal
The OECD has been working with the South East Europe (SEE) region since 2000 to develop and successfully implement policies for private sector development and investment. This pocketbook brochure summarises the most recent work in the region in the second edition of the Competitiveness in South East Europe: A Policy Outlook 2018. The study assessed six SEE economies in 17 policy dimensions through a highly participatory evaluation process that included in-depth, evidence-based analyses to provide guidance to governments and the private sector, and a toolkit for donors and international development agencies. For more information on the full publication, please click on this link: http://dx.doi.org/10.1787/9789264298576-en
Making Things Happen: Transitioning to a Circular Economy OECDglobal
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 4, "Making Things Happen: Transitioning to a Circular Economy", Iain Gulland – Chief Executive, Zero Waste Scotland
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 4, "Waste To Taste To 21st Century Food", Ivanka Milenkovic, GENERAL MANAGER - EKOFUNGI
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 4, "What is the Circular Economy?", Peter BORKEY, Principal Administrator, OECD Environment Directorate
SMEs’ financial challenges in Western Balkans to go green?OECDglobal
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 3, "SMEs’ financial challenges in Western Balkans to go green?", Safet Gërxhaliu, Member of the Managing Board of Western Balkans Chambers Investment Forum
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 3, Goran Korac, "Project "Design Center Promo21”, Business area Logorište, Karlovac, Croatia
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 3, "Environmental Financing in Estonia", Madis Kareda, Developmentmanager at EIC, Estonia
Croatia’s experience in improving access to finance for green SMEsOECDglobal
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 3, "Croatia’s experience in improving access to finance for green SMEs", Dubravko Ponoš, Director, ENERGY EFFICIENCY AND ENVIRONMENTAL PROTECTION FUND
Croatia
Incubation and Acceleration of High-Growth SMEs for a Greener EconomyOECDglobal
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 2, "Incubation and Acceleration of High-Growth SMEs for a Greener Economy", Dr. Deniz Tuncalp, Chief Marketing & Operations Officer, ITU ARI Teknokent, Turkey
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 2, "SMEs in a green Economy", James Hogan, Green Business Programme Manager
Clean Technology Centre
Cork Institute of Technology, Ireland
Policy Instruments to Promote Better Enviromental PerformanceOECDglobal
Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 2, "Policy Instruments to Promote Better Enviromental Performance", Eugene Mazur, OECD Environment Directorate
SMALL BUSINESS ACT (SBA) ASSESSMENT
Study Visit Photos
“SME and Academia Collaboration: Turkey’s Experience in Innovation and Technology Centres”
29-30 November & 1 December 2017
Istanbul, Turkey
Session 7: Technology transfer capacity building and proof of concept instrum...OECDglobal
Day 2, Session 7, 30 November 2017, Istanbul, Bridging the Gap - Technology Transfer Capacity Building and
Proof of Concept Instruments, Huseyin KEBAPCI
Legal Adviser - Intellectual Property & Technology Transfer
Session 6: EU support on competitiveness and innovation in TurkeyOECDglobal
Day 2, Session 6, 30 November 2017, Istanbul, SME and Academia collaboration: Turkey’s Experience in Innovation and Technology Centres, Ela Yazıcı İnan, European Union
Day 1, session 2, 29 November 2017, Center for Entrepreneurship and Innovation, Prof. Dr. Şebnem BURNAZ,
Director. Zeynep ERDEN BAYAZIT, PhD, Associate Director
1. The MENA-OECD Guarantee Database
Investment Security in the Mediterranean
(ISMED) Support Programme
Implemented by the MENA-OECD Investment Programme
(with funding from the European Union)
Andrew Fitzpatrick
Economist/Policy Analyst, MENA-OECD Investment Programme
20 March 2013
2. Provide information to private sector
investors of available guarantees and other
risk mitigation instruments
Investment Security in the Southern Mediterranean
Guarantee Database
• The ISMED Guarantee Database will provide comprehensive information on
guarantee and other investment security instruments available to investors in
ISMED countries;
• In a first phase will focus on risk mitigation instruments available for investments in
Jordan, Egypt, Tunisia and Morocco;
• Will include products offered by multi-lateral organizations, export credit agencies
and private sector insurers.
3. Web-based Database
• Conceived as a web link on
www.oecd.org/mena;
• Controlled access during
development ;
• Could be linked to websites of
partner organizations;
• Users will select a risk exposure
and then drill down to find
country specific and detailed
information.
Risk Exposures
• Currency risk and controls;
• Expropriation;
• War, terrorism, civil disturbance;
• Breach of contract by state or state
controlled entity;
• Breach of contract by non-state
counterparty;
• Non-state counterparty credit risk;
• Non-payment of a financial
obligation by a state or state-
controlled entity.
Investment Security in the Southern Mediterranean
Guarantee Database
4. Investment Security in the Southern Mediterranean
Guarantee Database
• Currency Risk and Controls;
Restrictions on ability to exchange local currency for foreign currency or to
transfer local currency out of the country. May restrict an investors ability
to repatriate profits or realize value of assets upon sale or liquidation;
Available products do not usually cover exchange rate volatility. Swap
agreements may be available through financial institutions to hedge
foreign exchange risk.
5. Investment Security in the Southern Mediterranean
Guarantee Database
• Please select the country for which Currency Risks and Controls
guarantee/insurance coverage is sought:
Jordan
Egypt
Tunisia
Morocco
6. Investment Security in the Southern Mediterranean
Guarantee Database
• Currency Risks and Controls guarantee/insurance coverage
products available for investments in Jordan include:
Type of Product Price Duration Offered by
Currency Inconvertibility and
Transfer Restriction
Varies, Average 1% of
amount covered
3-15 years MIGA, click for
more information
Other products X% 1-20 years XXXX, click for
more information
7. Investment Security in the Southern Mediterranean
Guarantee Database
• MIGA’s Currency Inconvertibility and Transfer restriction product
Protects against losses arising from an investor’s inability to
legally convert local currency
(capital, interest, principal, profits, royalties, and other
remittances) into hard currency (Dollar, Euro or Yen) and/or to
transfer hard currency outside the host country where such a
situation results from a government action or failure to act.
Currency depreciation is not covered. In the event of a
claim, MIGA pays compensation in the hard currency specified in
the contract of guarantee.
• Eligibility, pricing coverage and duration.
8. Investment Security in the Southern Mediterranean
Guarantee Database
• Eligibility:
Cross-border investments by investors in a MIGA member country
into a developing member country;
New investments as well as existing investments meeting certain
criteria;
Equity investments, shareholder loans, shareholder loan
guarantees. Non-shareholder loans where some other form of
direct investment is present. Capital market bond issues may also be
eligible for coverage;
Must be financially and economically viable and meet MIGA’s social
and environmental standards.
9. Investment Security in the Southern Mediterranean
Guarantee Database
• Pricing coverage and duration:
Pricing is on a case-by-case basis depending on country and project
risk. Fees average approximately 1% of the amount covered but may
be considerably higher;
Generally up to 90% of equity investments and 95% of debt
investments. No minimum amount. Total MIGA coverage across all
MIGA products limited to $220 million USD, but may be higher
where syndicated with other providers;
Duration a minimum of three years and a maximum of 15. May be
extended to 20 if appropriate;
Case study.
10. KEY CONTACTS:
Mr. Alexander BÖHMER
Head, MENA-OECD Investment Programme
Alexander.Boehmer@oecd.org
Mr. Andrew FITZPATRICK
Economist/Policy Analyst
MENA-OECD Investment Programme
Andrew.Fitzpatrick@oecd.org
For general enquiries:
mena.investment@oecd.org
www.oecd.org/mena/investment
With the financial assistance of the European Union