3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The government is already committed to active management of fiscal risks, including risks stemming from its COVID-19 response. HM Treasury surveys these from the centre of government, including through its Fiscal Risks Group (FRG), which reviews the most important fiscal risks and actions being taken to manage them. The FRG sits alongside groups responsible for the oversight and management of risks to the economy, tax, and spending. HM Treasury works directly with other government departments to assess risks to the public finances, in line with the principles set out in HM Treasury’s Orange Book. 3.3 Since 2016, the government has asked the Office for Budget Responsibility (OBR) to publish a fiscal risks statement to improve disclosure and management of fiscal risks. The statement draws on contributions from government and other stakeholders, and has been recognised by the International Monetary Fund and Organisation for Economic Cooperation and Development as one of the most comprehensive of its kind. The 2021 Fiscal Risks Report included a chapter on risks stemming from COVID-19; the government is committed to respond within 12 months. 3.4 The government set out its spending plans and choices up to 2024-25 in the Autumn Budget and Spending Review 2021 document. The pandemic has highlighted the importance of ensuring the right capability is in place to manage contingent liabilities in the public sector. The last 12 months have seen the launch of the Contingent Liabilities Approvals Framework and Contingent Liabilities Central Capability and they will provide tools to mitigate and manage contingent liabilities risks before they arise.