Overview of Advances in Risk Management of Government Debt Modern risk management has become an important tool for achieving strategic debt targets in the OECD area. In essence risk management policies based on the use of formal methods are now an integral part of debt management in most OECD jurisdictions. In general risk management tolerances and policies are approved (and often set) by the Ministry of Finance (or other appropriate Ministry). This strategy about risks entails an explicit political decision about the trade off between costs and risks. The actual risk management operation is often run at a separate agency responsible for management of the sovereign debt or at the central bank if it manages the debt and is typically segregated from other treasury...