Abstract:

As the responsibilities of the states in the economy increase, the need for debt is also increasing due to the lack of ordinary public income. The increase in debt makes debt management more important. Today, debt management, which includes risk management, is used as an indispensable financial and economic policy tool. Debt management develops measures not only to borrow, but to borrow with an optimal composition. Therefore, there is more work to the debt management. Debt management, its sizes and effects are faced with different types of risk. These risks, which are much more important especially for developing economies, are referred to as credit risk, debt conversion risk, liquidity risk market risk, compromise risk and operational risk. Measurement of market risk is also an efficient factor. In this context, techniques are used in the form of scenario analysis, risk value analysis, risk cost analysis, durability test and time and remaining average time analysis. Our study has primarily addressed the concepts of debt management and risk management and the types of risk. As risks affect policy decisions, the importance of types of risks increases. Risk measurement management and techniques are then studied. In this context, active and passive debt management is the techniques that provide detailed information in the risk measurement. Risk management is an effective management that includes technical knowledge and controls on implementation results. But in developing countries, it is difficult to do so. It is important to identify these difficulties. Therefore, the next part of the study examined the difficulties in risk management. In Turkey, the coordination of debt and risk management has been announced. In the result section of the study, the importance of debt management, the problems in this process and the measures against them have been examined and a general assessment of the process related to debt management in Turkey has been made. Keywords: Risk Management, Risk Management, Risk Measurement Methods JEL Classification: H63, H68, G32

Keywords:

Abstract:

As the roles of states increase, the need for borrowing increase due to insufficient public revenues. Due to the importance of borrowing, debt management becomes more important. Debt management (risk management) is used as a financial and economic policy tool. Another important issue is borrowing with an optimal composition. Debt management has more duties. There are several risk types which are important for developing countries such as rollover risk, liquidity risk, market risk, settlement risk, and operational risk. Measuring market risk is also important. Techniques such as senario analysis, value at risk, cost at risk, stress test and time analysis are used.In this paper, firstly, debt management, risk management, risk types are defined. Taking the effects of risks on political decisions into account, the importance of risk types become more relevant. Secondly, risk measurement techniques are analysed. Here, active and passive debt managemet are important techniques giving detailed information in risk measurement. Risk management includes technical information and control over implementation results. However, developing countries face serious problems in implementing risk management policies due to specific circumstances. That’s why thirdly, the difficulties that the developing countries face in risk management are analysed. Forthly, the regulations in the coordination of debt management and risk management in Turkey are explained. In conclusion, the importance of debt management, the problems that occur in this process and the precautions that are taken against these problems are analysed and a general evaluation of Turkey’s debt management is made. Key Words: Debt Management, Risk Management, Risk Quantification Methods JEL Classification:H63, H68, G32.