Risk Control

The division will work toward finalizing the Model Risk Review Initiative. In addition, work will continue on assessing alternative performance benchmarks to ensure the OFA’s benchmarks are incorporating industry best practices. Portfolio stress testing will be expanded and the division will support the Province’s priorities in the areas of infrastructure investment, electricity supply and funding of the electricity stranded debt, through the development and implementation of risk management policies and the associated operational infrastructure for new business initiatives (e.g., ONFA, and non-utility generators (NUGs) portfolio management).

Also in 2004-05, the division plans a number of system developments for the OFA that will include initiatives to provide a redesigned framework for Risk Control’s data, operational, modelling and forecasting needs. The ITS will be enhanced to include pricing of embedded options on debt. This additional functionality will provide consistent pricing across all systems.

The new categorization structure being developed by the Integrated Financial Information Services (IFIS) and the central agencies concerning the ministries’ cash forecast will be integrated into the Cash Management Integrated System Project. This new package (which includes cash forecasting) replaces the previous Corporate Ledger System on IFIS. Additional integration of the Chequer, BankReporter and the Radar system with the Cash Management Integrated System will also proceed. An integrated system will improve efficiency and eliminate the reliance on spreadsheets and manual data inputs.

For OEFC, operational systems to facilitate the reporting and auditing of electricity power payments to NUGs will be implemented. For OSIFA, the Loan Application and Reporting system will be enhanced to support the expanded loan application form. The Loan Administration system also will be enhanced to provide capabilities for debenture loans, both amortizing and serial, and administration functions for construction loans.