Risk Management for Central Banks

Risk Management for Central Banks

Risk Management for Central Banks

Course Chair: Janet Cosier, former Adviser on Strategic Planning and Risk Management, Bank of Canada


Day 1, 10th September - Emerging Frameworks for Risk Management 

What risks do central banks face in 2019? 
Marko Škreb, former Governor, Croatian National Bank 

  • Evolution of the risk management function in central banks 
  • Emerging external risks – the economy, geopolitics and technology
  • Overview of risks from the inside – governance, culture and ethics 
  • Discussion: What are the key risks facing central banks in the delegates’ home jurisdictions? 

Reputation: the keystone in managing risks

  • Role of central bank’s reputation in achieving policy objectives and preserving independence
  • Overview of key factors and dynamics affecting central banks’ reputation 
  • Examples of methods and frameworks for effective reputational risk management
  • Discussion: How to pre-emptively identify and address sources of reputational risk?

Risk management in the era of disruptive innovation 
Gerry Cross
, Director of Policy and Risk, Central Bank of Ireland 

  • Disruptive innovation as a source of challenges and opportunities for risk managers 
  • Tips for managing the impact of technological innovation
  • Examples of successful integration of innovation into the risk management frameworks 
  • Discussion: How do risk managers need to change to make the most of innovation? 

Day 2, 11th September - Enhancing the Risk Management Toolkit 

Risk culture and awareness – the key to success 
Janet Cosier
, former Adviser on Strategic Planning and Risk Management, Bank of Canada 

  • Building blocks of a risk-aware culture in central banks
  • Examples of strategies and initiatives to increase risk awareness
  • The role of risk awareness in organisational resilience 
  • Discussion: What will be the key features of the culture of risk awareness for 2020 and beyond? 

Making the most of RiskTech – a user’s guide
Andy Robson
, Manager of the Risk Technology Department, Ernst and Young (invited)

  • Building blocks of risk management technology
  • Examples of RiskTech applications in central banks
  • Strategies for managing the key risks of RiskTech
  • Challenges and opportunities of integrating new technologies into existing frameworks 

Enterprise risk management in focus: key features of an effective system 
Matthew Hite
, Vice President, Strategic Bank Services, Federal Reserve Bank of Cleveland 

  • Key features of the enterprise risk management framework in a modern central bank
  • Examples of structures and matrices to assess the levels of maturity of risks 
  • Application of enterprise risk management on a strategic level 
  • Discussion: How to classify and rate risks the basis of likelihood and impact? 

Enabling the risk function: moving towards an integrated corporate management framework
Janet Cosier
, former Adviser on Strategic Planning and Risk Management, Bank of Canada 

  • Overview of new roles, functions and responsibilities of risk management departments 
  • Impacts of organisational developments on the work of central bank risk managers
  • Key components of a robust and responsive risk management framework 
  • Discussion: What is the role of the risk management department in a modern central bank? 

Risk management: cost or investment?
Phil Rayner, Technology Risk Manager, Bank of England (invited)

  • Overview of “traditional” resourcing strategies for the risk management function
  • Examples of frameworks to effectively manage the needs of competing departments and develop an across-the-bank view
  • Tips for generating buy-in from leadership groups and the board
  • Hands on exercise: Performance review of a central bank’s risk management strategy and budget

Day 3, 12th September - Risk Management and Business Resilience in Practice 

Business continuity in focus: planning, design and activation  
Shehzad Ali Sharif
, Joint Director, Strategic Planning Department, State Bank of Pakistan and Muhammad Akmal, Director Strategic Planning, State Bank of Pakistan 

  • The role of business continuity in central bank’s organisational resilience  
  • Tips for designing an effective business continuity plan 
  • The responsibilities of inter-departmental coordination and cooperation for business continuity 
  • Hands on exercise: Activating a business continuity plan 

Cyber risk and resilience: strategies, policies and frameworks for central banks 
Ed O’Neill,
Assistant Vice President, Secure Payments Team, Federal Reserve Bank of Chicago (invited)

  • An overview of the current cyber threat landscape
  • Emergence of new risks and the evolution of persisting ones
  • Examples of strategies and responses to digital disruption and cyber attacks 
  • Discussion: What does it take to resource a modern cyber resilient framework? 

Maintaining operational resilience: identifying, managing and mitigating risks
Gabriel Andrade
, Director and Deputy Head of the Risk Management Department, Bank of Portugal 

  • The role of operational resilience in risk management strategies
  • Key features of an effective operational risk framework
  • The use of ORM workflow and risk assessment matrices for identifying and mitigating operational risks 
  • Case study: The Bank of Portugal’s new operational risk framework 

Day 4, 13th September - Governance and Reporting: A Forward Thinking Approach 

Risk governance: operational arrangements and institutional organisation
Led by the chair, Janet Cosier 

  • Examples of tools and indicators to assess the needs of risk managers
  • Implications for institutional strategies and inter-departmental cooperation
  • Examples of matrixes for continuous re-evaluation of risk governance frameworks
  • Discussion: what does it take to attract, train and maintain the best risk managers?

Measuring and reporting - the backbone of the risk department  
Matthew Hite
, Vice President, Strategic Bank Services, Federal Reserve Bank of Cleveland 

  • Examples of channels for effective reporting of risks
  • Expectations of risk management from the board and other departments  
  • Expectations of decision makers from risk managers 
  • Discussion: How can risk managers show their worth?

Delegate action points and course conclusion 
Led by the chair, Janet Cosier 

  • Summary of the course’s main points 
  • Discussion of the observed trends and case studies 
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points