Central Bank Board: Good Governance, Resilience and Enhancing Performance
Central Bank Board: Good Governance, Resilience and Enhancing Performance
Central Bank Board: Good Governance, Resilience and Enhancing Performance
Disruptive Innovation: New Risks and Opportunities for Central Banking
09:00 – 10:30
Environmental, Social and Governance (ESG): how, where and when can central banks contribute?
Presentation followed by Q&A
- Climate risk and central bank mandates – division of responsibilities with governments
- Integrating climate risk into risk management frameworks related to monetary policy and financial stability
- Frameworks for integrating ESG considerations and climate risk into investment decisions
- From COVID-19 to green recovery?
- Concluding observations
Chair: Audun Grønn
Former IMF executive director, former special advisor to the Governor, Norges Bank
Norges Bank, International Monetary Fund (IMF)
Born 1953. Mr. Grønn holds a graduate degree in economics (cand.oecon. 1979) from the University of Oslo. Work experience since 1980 includes various positions at Norges Bank, including Director of International Department, Director of Statistics Department, and Special Advisor to the Governor. Mr. Grønn spent altogether eight years at IMF’s Executive Board in Washington DC, as Senior Advisor (1989-1992), Alternate Executive Director (2011-2013) and Executive Director (2013-2016), as well as one year at the ECB in Frankfurt as national central bank expert, monetary policy (2005-2006). He retired from his position at Norges Bank in July 2021, but continues as a consultant on a part-time basis.
10:30 – 11:00
Coffee break
11:00 – 12:30
Risk appetite: the cornerstone of corporate culture
- Overview of key factors and dynamics shaping risk appetite in a central bank
- Impact on corporate culture and organisational resilience
- Examples of tools and strategies for monitoring and continuous assessment
- Discussion: what can the board do to help to change a central bank’s risk appetite?
12:30 – 13:30
Break
13:30 – 15:00
Digital money issuance, oversight and regulation: where do central banks stand?
Presentation followed by Q&A
- Taxonomy of digital money: CBDCs, stablecoins and crypto assets
- Implications for roles and responsibilities of central banks
- Overview of key financial, operations and regulatory risks
- Discussion: how to educate markets, players and the public?
15:00 – 15:30
Coffee break
15:30 – 17:00
Case-study: explaining and selling the sustainability proposition
- Understanding commitments to ESG and sustainability from a corporate perspective
- The new normal: managing alignment and potential conflicts with existing mandates, practices and cultures
- Examples of central bank initiatives for tackling climate change internally
- Discussion: how are sustainability policies implemented in the delegates’ home institutions?
17:00 – 17:15
Coffee break
17:15 – 18:45
Hacked! Understanding cyber resilience in an era of digital disruption
Pre-recorded presentation
- Implications of cyber risk for central bank mandates, policy functions and corporate services
- Cyber attack: key features of effective crisis management plan and business continuity
- Roles and responsibilities of the board in a cyber attack crisis
- Discussion: what is the boards role during a cyber attack?
Accountability, Transparency and Independence
09:00 – 10:30
Maintaining central bank independence
Presentation followed by Q&A
- Key challenges to central bank independence in 2020
- Role and responsibilities of the board in safeguarding independence
- Examples of legal and governance measures available and effected
- Discussion: accountability and central bank independence as mutual enablers
10:30 – 10:45
Coffee break
10:45 – 12:15
Communication: demonstrating good governance and safeguarding reputation
- Governance, reputation and legitimacy as the pillars of a resilient central bank
- Role of communications in management of reputational risk
- Examples of strategies and approaches to communication - cross-country comparisons
- Hands-on exercise: how to measure the effectiveness of communications?
12:15 – 13:15
Break
13:15 – 14:45
Good governance: the role of diversity and inclusion
Presentation followed by Q&A
- Diversity and inclusive culture as building blocks of good governance frameworks
- Implications for corporate services and the human resources function
- Examples of projects and initiatives focused on integration of under-represented groups
- Discussion: what should the board do to lead by example?
Demonstrating Value to Stakeholders
09:00 – 10:30
Financial strength: what does it mean for central banks – and how to achieve it
- Taxonomy of variable determining central banks’ financial strength
- Role of accounting in maintaining central banking independence
- Implications for the relationship with the public and stakeholders
- Discussion: how to determine the appropriate level of financial resources needed for central banks to perform their functions?
Robin Darbyshire is a chartered accountant who has worked, as an independent consultant for 10 years, mainly on central bank issues. He has undertaken a number of projects for the International Monetary Fund, including implementation of International Financial Reporting Standards (IFRS) in central banks. He has also worked on a payments system at a middle eastern central bank. Previously he spent 19 years with the Bank of England, for 17 of which he was responsible for the Bank’s accounts. He was a founder member of the committee that devised the accounting framework and policies for the European System of Central Banks and has recently undertaken projects for the European Central Bank related to Eurosystem accounting. He has written a number of articles on issues in central bank accounting and regularly speaks at conferences on central bank finances.
10:30 – 11:00
Coffee break
11:00 – 12:30
Reporting lines and the role of the secretary of the board
Interactive workshop with delegate participation
- Examples of frameworks for organising priorities and activities of the board
- Role of the secretary of the board in managing information flow and interdepartmental communication
- Building blocks of effective reporting lines and processes
- Discussion: what is expected of the board secretary in the delegates’ home organisations?
John Jussup was general counsel and secretary of the Bank of Canada, from 2009 until July 2012. Prior to joining the central bank, he was senior vice-president, chief legal officer & secretary of Cognos Inc., one of Canada’s leading software companies, from 1993 until its acquisition by IBM in 2008. Before joining Cognos, Mr Jussup held increasingly senior in-house counsel and secretarial positions in the mining, medical diagnostics and finance industries. He graduated from the Royal Military College of Canada and from Queen’ University, in Kingston, Canada (LLB). He was called to the Ontario Bar in 1979. He was a recipient of the Canadian General Counsel of the Year Award in 2005 in recognition of his achievements corporate governance. He currently sits on a number of boards and consults in the areas of in corporate secretarial and in-house legal practice.
12:30 – 13:00
Networking break
13:00 – 14:00
Closing remarks and delegate action plans
Concluding session led by the chair
- Summary of the course
- Discussion of the observed trends and case studies
- Application of learning points in the delegates’ home organisations
- Preparation of action points