Risk Management for Central Banks

Risk Management for Central Banks

Risk Management for Central Banks

October 05 - 06  

Covid-19 is reshaping central bank risk management.

It has forced central bankers to rethink the risks they face and, ultimately, have to manage.

It has challenged them to work in new ways – and to manage the resulting new risks.

It has torn up best-laid contingency plans.

For those charged with managing risks in central banks, the crisis has shown the importance of a robust yet flexible framework for managing the wide range of risks they face: from sustainability to reputation from digital currencies to data management.

 

Agenda

Delegates will have access to pre-recorded presentations two weeks before the course

00:0000:00

CBDCs, stablecoins and crypto assets: a taxonomy of risk and opportunities in digital money
Pre-recorded presentation

00:00 - 00:30

  • CBDCs, stablecoins and crypto assets: a taxonomy
  • A framework for thinking about the risk and opportunities of digital money
  • Balance innovation with systemic stability concerns
  • Case study:  implementation and assessment of a CBDC project
Ron Berndsen

Chair of Financial Market Infrastructures and Risk

Tilburg University

Professor Ron Berndsen is an independent director of LCH and chairs the LCH Risk Committees. He is also attached to the Tilburg School of Economics and Management at Tilburg University as full professor of Financial Market Infrastructures and Systemic Risk.

Ron is editor-in-chief of the Journal of Financial Market Infrastructures and a member of the Advisory Council of the SWIFT Institute.

The author has been active in the field of payments and market infrastructures for over 15 years. He was Head of the Oversight Department and Head of the Market Infrastructures Policy Department at De Nederlandsche Bank. Ron also served as a member on the Market Infrastructure Board at the European Central Bank and as member of the Committee on Payments and Market Infrastructures at the Bank of International Settlements. He also co-chaired the FSB Group on Cross-Border Crisis Management for Financial Market Infrastructures and was a member of the oversight committees of CLS, EuroCCP, Euroclear, LCH, SWIFT and TARGET2. 

He was awarded a doctorate of Tilburg University in 1992 for his PhD thesis in Economics and Artificial Intelligence.

The risk management function: resourcing and institutional organisation
Pre-recorded presentation

00:00 - 00:30

  • Overview of institutional arrangements for the risk management function
  • A framework for re-evaluating and strengthen risk governance
  • Resourcing: changing requirements for skillsets and systems
  • Hands on exercise: good practices for identifying, assessing and managing emerging risks
Evangelos Tabakis

Head of Risk Management

Central Bank of the United Arab Emirates

Evangelos Tabakis is the head of Risk Management and Compliance in the Central Bank of the United Arab Emirates, responsible for financial and operational risk, business continuity, information security and compliance across the activities of the central bank.  Previously he had been at the European Central Bank (ECB) in Frankfurt for fourteen years, holding positions in Market Operations and Risk Management. Most of his work at the ECB was related to the operational, risk management and financial stability issues posed by large scale collateralized lending to banks. Prior to his central banking career, Mr. Tabakis held academic positions at Yale University, the University of Bayreuth in Germany and the Athens University of Economics and Business in Greece. He holds a first degree in Mathematics from the University of Athens and a Ph.D. in Applied Mathematics (Mathematical Statistics) from the Massachusetts Institute of Technology.

Measuring and reporting - the backbone of the risk department
Pre-recorded presentation

00:00 - 00:30

  • Examples and channels for effective reporting of risks
  • Expectations of risk management from the board and other internal departments 
  • Expectations of decision makers from risk managers
  • Discussion: how can risk managers show their worth?
Strategic asset allocation and risk management
Pre-recorded presentation

00:00 - 00:30

  • Overview of the Bank of Lithuania’s approach to risk parity framework
  • Examples of a risk and asset allocation framework
  • Risk parity approach for strategic asset allocation
Jonas Kanapeckas

Director of Banking Services

Bank of Lithuania

Timings are subject to change as we evaluate geographic limitations of participants

12:0012:30

Course introduction
Opening remarks with the course chair

00:00 - 00:30

  • Introduction of the chairman
  • Overview of the training course
  • Discussion of the delegate expectations

12:3013:30

Risk management frameworks for the era of disruptive innovation
Presentation followed by Q&A

07:00 - 08:00

  • Disruptive innovation as a source of risk management challenges and opportunities
  • Assessing the impact of disruptive technological innovation
  • Examples of integrating innovation into a risk management framework
  • Discussion:  is your risk culture receptive to innovation?
Claudio Pastori

Process Manager, Directorate General Information Systems

European Central Bank

Claudio has more than 15 years of experience in the area of IT Governance at the European Central Bank (ECB). He is currently a Senior IT Expert in the Governance and Transformation Services Division in the Chief Services Office. He is the Service Level Management Process Manager serving the Directorate General Information System with focus on process improvement activities. As Service Level Manager for a number of business and technical applications across the ECB, Claudio is responsible for ensuring the stability of core IT business applications and a cost-conscious management of the IT infrastructure landscape. Claudio supports IT Projects in the collection of non-functional requirements and makes sure that SLAs are implemented in a timely manner. For many years, he has been in charge of leading ECB's ISO standard IT internal audits and he is currently responsible for coordinating IT procurement activities for the Directorate General Information Systems. Claudio holds a Ph.D. in Economics and a Ph.D. in Methodological Statistics.

13:3013:45

Break

12:00 - 12:15

13:4514:45

Cyber risk: strategies, policies and frameworks
Presentation followed by Q&A

08:00 - 09:00

  • Overview of the current cyber threat landscape
  • Emergence of new risks and the evolution of existing risks
  • Examples of strategies and responses to digital disruption and cyber attacks
  • Discussion: what does it take to resource a modern cyber resilience function?
Manit Sahib

Head of Penetration Testing

Bank of England

Manit Sahib is the Head of Penetration Testing at the Bank of England. He is an Offensive Security (OSCP) and CREST certified tester with NCSC’s CHECK status. Previously a security consultant at PwC, he has obtained a vast amount of technical experience from a variety of global organisations. Now, leading BoE’s offensive team to plug the gaps in a collaborative approach.

14:4515:00

Break

13:15 - 13:30

15:0016:00

Towards sustainability: risk perspectives on greening central banking
Presentation followed by Q&A

00:00 - 01:00

  • Understanding the connection between central banking and climate-related risks
  • A framework for thinking about climate-related risks and their impact
  • Implications for policymaking, operations and governance
  • What this means for risk management: short, medium and long term
Gabor Gyura

Head – Supervisory Methodology Department

Central Bank of Hungary

16:0016:00

End of day 1

00:00 - 00:01

Timings are subject to change as we evaluate geographic limitations of participants

12:0013:00

Internal audit and compliance: efficient operations in three lines of defence set up
Presentation followed by Q&A

08:00 - 09:00

  • Internal audit – the what and why’s
  • Independence and objectivity of Internal Audit functions
  • How can internal audit and risk management work together?
  • Discussion: Your expectations of internal audit and how can you enhance interactions with internal audit at your organisation?
Mads Kristensen

Assistant Director, Internal Audit

Norges Bank

Mads G. Kristensen is the deputy head of the Internal Audit department at Norges Bank. He is certified as a state authorised public accountant as well as an internal auditor. A substantial part of his work is devoted to the banks operations for managing the Government Pension Fund Global, which is one of the largest sovereign wealth funds in the world. Mr. Kristensen holds an MSc in Accounting and Auditing from BI Norwegian Business School.

13:0013:15

Break

12:00 - 12:15

13:1514:15

Key features of an effective enterprise risk management system
Presentation followed by Q&A

00:00 - 00:30

  • State of the art in risk management: the case for an enterprise view
  • Examples of structures and matrices to assess the levels of maturity of risks
  • Integrating ERM at the strategic level and cascading to operational level
  • Discussion: how to classify and rate risks based on likelihood and impact
Matthew Hite

Vice President, Strategic Bank Services

Federal Reserve Bank of Cleveland

Matthew Hite is the vice president of Strategic Bank Services for the Federal Reserve Bank of Cleveland.  In his role, he oversees the Bank’s Enterprise Risk Management, Strategy and Performance Management, Information Security, Business Continuity, and Continuous Improvement teams.  He also supports the Federal Reserve System’s risk management program, with a focus on operational risk. Mr. Hite has 25 years’ experience in risk management, compliance, operations, and audit at both the Federal Reserve Bank of Cleveland and in the private sector. 

14:1514:30

Break

13:15 - 13:30

14:3015:30

Enabling the risk function: Moving towards an integrated corporate management framework
Interactive workshop with delegate participation

00:00 - 01:00

  • Overview of new roles, functions and responsibilities of risk management departments
  • Impacts of organisational developments on central bank risk management
  • 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?
Janet Cosier

Former adviser on strategic planning and risk management

Bank of Canada

Janet Cosier is the former Chief Risk Officer and Adviser on Strategic Planning at the Bank of Canada. She continues in her capacity as the Chair of the Board of Directors of the Canadian Payments Association. She has served in a variety of functions including comptroller and chief accountant, as well as chief internal auditor, before being appointed adviser to the governor. She has provided technical assistance to various central banks in the areas of strategic planning, risk management, governance and financial reporting. Before joining the Bank of Canada, she worked with the Office of the Auditor General of Canada and with the Department of Industry, Trade and Commerce. Mrs Cosier holds degrees from York University and the University of Windsor in mathematics, computer science, accounting and financial management.

15:3016:00

Break

12:00 - 12:15

16:0016:30

Delegate action points and course conclusion
Course conclusion

14:45 - 15:15

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

Participants will continue their learning post-event

00:0000:00

Post training survey and feedback

00:00 - 00:30

Course alumni group

00:00 - 00:30

CPE/CPD certificate

00:00 - 00:30

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Janet Cosier

Former Adviser on Strategic Planning and Risk Management

Bank of Canada

Janet Cosier is the former Chief Risk Officer and Adviser on Strategic Planning at the Bank of Canada. She continues in her capacity as the Chair of the Board of Directors of the Canadian Payments Association. She has served in a variety of functions including comptroller and chief accountant, as well as chief internal auditor, before being appointed adviser to the governor. She has provided technical assistance to various central banks in the areas of strategic planning, risk management, governance and financial reporting. Before joining the Bank of Canada, she worked with the Office of the Auditor General of Canada and with the Department of Industry, Trade and Commerce. Mrs Cosier holds degrees from York University and the University of Windsor in mathematics, computer science, accounting and financial management.

Learning outcomes

By the end of the training course, participants will have gained new knowledge and a more comprehensive understanding of:

  • Understanding of risk perspectives on greening the financial system 
  • Risk and opportunities: CBDC’s, virtual assets and digital money
  • Best practice for cyber risk strategies, policies and frameworks
  • Effective measuring and reporting of risk
  • Understanding of reputational risk from a public image and education perspective
  • Knowledge on the relationship between risk and internal audit and compliance
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What to do next?

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