Government Employees Pension Service, Strengthening Risk Management by Revamping Financial Risk Early Warning Indicators

[Financial News]  


Government Employees Pension Service (Chairman Kim Dong-geuk) announced on the 2nd that it will prepare and implement a plan to improve early warning indicators for the financial market starting in May this year.
This revamp aims to enhance the precision of the early warning system to respond more sensitively to rapidly changing financial market conditions amid increasing uncertainty in the global financial environment. It was prepared after deliberation by the Risk Management Committee at the end of April.
The improved early warning system has increased sensitivity to volatility by adjusting the threshold for the won/dollar exchange rate, subdivided the stock market monitoring standard indicators from the global index (MSCI ACWI) to the developed countries index (MSCI WI) and the emerging markets index (MSCI EM), and thirdly, introduced the bond Move index to reflect volatility in the bond market.
Ju Hyun-tae, head of the Risk and Legal Affairs Office of the Government Employees Pension Service, stated, "In a highly volatile market, leading indicators such as early warning indicators are important," and "This improvement is a measure for rapid response in a complex crisis phase, and we plan to continuously enhance the early warning system by closely analyzing market trends."



ktitk@fnnews.com Kim Tae-kyung Reporter