Course Outline

Module 1: Understanding Contingent Liabilities

• Definition and classification

• Examples: guarantees, legal claims, PPPs, SOE obligations

• Fiscal risks and macroeconomic implications

• STP Application: Segment types of liabilities; Target high-impact risks; Position liabilities within fiscal frameworks

• Case Study: Identification of contingent liabilities in a government infrastructure project

Module 2: Risk Assessment Techniques for Contingent Liabilities

• Risk identification matrix and heat maps

• Probability and impact assessment

• Scenario and sensitivity analysis

• Case Study: Assessing the risk of state guarantees on loans to SOEs

Module 3: Accounting and Reporting Standards

• IPSAS and IFRS treatment of contingent liabilities

• Recognition vs. disclosure

• Integration into fiscal reports and debt sustainability analyses

• STP Application: Segment stakeholders (e.g., auditors, donors); Target critical disclosures; Position reporting for fiscal discipline

• Practical Exercise: Preparing a contingent liability disclosure note for financial statements

Module 4: Mitigation and Control Mechanisms

• Legal frameworks and guarantee ceilings

• Risk-sharing agreements and insurance

• Contingent liability funds and budget contingencies

• Case Study: Designing a mitigation strategy for PPP project risks

Module 5: Institutional Framework and Policy Integration

• Role of treasury, audit institutions, and parliament

• Risk governance and capacity-building

• Embedding contingent liability management in public finance policy

• STP Application: Segment institutional roles; Target integration in fiscal planning; Position risk governance as a strategic pillar

• Capstone Project: Developing a comprehensive contingent liability risk management plan for a public institution