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AGENCE FRANCE TRESOR is tasked with managing the government debt and cash positions under the most secure conditions in the interest of the taxpayer.
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Definition  
Risk management and control
Within the framework of its functions, AFT must:
  • define and implement a control framework and procedures for the State's financial transactions;
  • manage all risks associated with financial transactions, particularly interest-rate risks, counterparty risks, settlement risks, operational and IT risks and the risk of a gap between forecasts and actual results;
  • process the administrative aspects of financial transactions;
  • ensure proper settlement in the Treasury account at the Banque de France (back-office processing).

Risk control is a cross-functional activity applicable to all AFT transactions.

A framework in line with market practices
Although the State itself is not a financial institution, Agence France Trésor, which handles its debt and treasury requirements, is similar to a financial institution in its activities, the risks it runs and its business lines. As such, the provisions set forth by the order of 3 November 2014 on the internal control of undertakings in the banking sector seem perfectly applicable to the Agency’s internal control and risk control processes, with some adjustments to meet its specific requirements.

There are four key principles:
  • ongoing control in each operating unit and periodical audits of the effectiveness of controls put in place;
  • segregation of functions (e.g. between initiation, confirmation and control of risks connected with financial transactions);
  • definition of internal limits;
  • effective audit trail (capacity to reconstitute transactions and the associated cash flows in logical order).

The AFT has therefore developed and implemented a general framework for its activities, together with detailed standards for management, organisation and control. The Head of the Directorate General of the Treasury, who is also the Chairman of Agence France Trésor, must approve this general framework. The staff of Agence France Trésor is subject to a specific Ethics Charter based on those in effect in the financial sector.