Ghana Petroleum Funds Secretariat Embraces Robust Risk Management Framework
Accra, GHANA - Establishing a Strong Foundation for Transparency and Accountability
In line with the provisions of the Petroleum Revenue Management Act (2015), Act 893 as amended, the Bank of Ghana has established a robust risk management framework to oversee the investment process of the Ghana Petroleum Funds. This move is aimed at ensuring that the funds are managed in accordance with international best practices and the country’s regulations.
Separation of Assets Critical
The establishment of the Ghana Petroleum Funds Secretariat (GPFS) under the Financial Markets Department of the Bank of Ghana has been a significant step towards ensuring the separation of the management and assets of the Ghana Petroleum Funds from the foreign exchange reserves of the Bank. This move is aimed at preventing any potential conflicts of interest and ensuring that the funds are managed independently.
Risk Management and Compliance
The Risk Management and Compliance function of the GPFS plays a critical role in identifying, assessing, and mitigating risks associated with the investment process. The function reports weekly to the Director of the Financial Markets Department and presents risk management and performance reports to the Ghana Petroleum Funds Investment Committee chaired by the First Deputy Governor, as well as the Foreign Exchange Reserve Management Committee, chaired by the Governor.
Key Compliance Rules
- Coded into investment platforms for monitoring and implementation
- Ensures all investments made by the GPFS are in line with country’s regulations and international best practices
Enterprise Risk Register
The GPFS management framework has been incorporated into the Bank of Ghana’s enterprise risk register. The risk register is subject to semi-annual surveillance by an external auditor from the International Standards Organisation (ISO), which ensures that the framework remains compliant with international standards.
Conclusion
The establishment of a robust risk management framework for the Ghana Petroleum Funds Secretariat is a significant step towards ensuring transparency and accountability in the management of the country’s petroleum revenue. The move demonstrates the Bank of Ghana’s commitment to upholding international best practices and complying with local regulations, ultimately contributing to the economic development of the country.