Rethinking Reserves: Using Data to Determine the Right Level

Governments are subject to financial shocks, including natural catastrophes, recessions, and more. Financial reserves (a “rainy day” fund) are essentially a form of self-insurance that governments use to buffer themselves against these risks. But what are the risks governments should be concerned about? What size of reserves is appropriate to cover risks? What opportunities are there to use commercial insurance to help cover these risks?

As the number of potential risks increase, governments need improved reserve strategies. At the same time, public trust in government and experts means governments will face more pressure to justify holding reserves, and local governments are becoming more resource constrained. In this webinar, speakers will discuss data-driven strategies they used to determine the correct level of reserves for their community. Participants will leave with resources and strategies to apply risk-aware and risk-savvy thinking to reserves in their own organizations.

Who Will Benefit: Budget Manager, CFO/Finance Director, Controller

Learning Objectives:

• Understand why it’s necessary to reevaluate the traditional approach to financial reserves
• Learn different options for how local governments can take account of their risks
• Discuss how to develop a comprehensive reserve policy