Useful Lessons for Assessing Risk in GFOA Government Finance Review article, “Stress Testing Your Reserves with Advanced Analytical Techniques”

Thursday, September 10, 2020 in Articles

Useful Lessons for Assessing Risk in GFOA Government Finance Review article, “Stress Testing Your Reserves with Advanced Analytical Techniques”

Investment management is a specialized form of risk management. In an article originally published in GFOA’s Government Finance Review, June 2019, “Stress Testing Your Reserves with Advanced Analytical Techniques,” Shayne Kavanagh considers risk and quantifying risk as the basis for developing reserve policies. Basically, the way to decide the appropriate level of financial reserves for a local government is to better understand its risks. The same reasoning holds for structuring an investment portfolio.

To read the article, click here.

GFOA Best Practice, Investment Program for Public Funds


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