This publication provides a new resource for those who would like to know how the Eurosystem designs and conducts the risk management of its monetary policy operations. Monetary policy operations often involve the collateralised provision of funds to eligible counterparties on a temporary basis or the conduct of outright market transactions. These are financial operations entailing risks which need to be managed. Since the start of the financial crisis the Eurosystem has had to increase the size and complexity of its monetary policy operations, which has also led to an increase in risks to its balance sheet. This booklet written by staff from the European Central Bank’s Directorate Risk Management describes the risks faced by the Eurosystem in the area of monetary policy operations and how they are mitigated, managed and reported.