Risk Management for Central Banks 2022

Risk Management for Central Banks

Risk Management for Central Banks

March 21 – 24

Live Content sessions held: 8am–12pm (EST) | 1pm–5pm (GMT) | 9pm–1am (SGT) 

Chair: Janet Cosier, former advisor on strategic planning and risk management, Bank of Canada

Covid-19 has reoriented central bank risk management. The global pandemic has forced central bankers to reassess the risks they face and, ultimately, must manage.

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

It has highlighted new areas of interconnectedness – and disconnects. It has ripped up carefully thought-out contingency plans.

The crisis has shown the importance of a robust yet flexible framework for managing the wide range of risks they face: from managing conduct risk and the human element, to reputational risk, to cyber and IT risks.

This course is designed to equip central bankers to meet these challenges.

Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing key learnings.

View chair letter.

 

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

The risk management function and the current challenges it faces

13:0013:30

Course introduction
Course introduction session led by the chair

13:00 - 13:30

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Janet Cosier

Former advisor on strategic planning and risk management

Former 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.

13:3014:30

What risks and challenges do central banks face?

13:30 - 14:30

  • Evolution of the risk management function in central banks
  • Emerging external risks – the economy, geopolitics and technology
  • Evolving risks from the inside – governance, culture and ethics
  • Discussion: What are the key risks in the delegates home jurisdiction
Janet Cosier

Former advisor on strategic planning and risk management

Former 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.

14:3014:45

Break

14:30 - 14:45

14:4515:45

Internal audit and compliance: efficient operations in three lines of defence set up

14:45 - 15:45

  • 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?

15:4516:15

Networking break
An opportunity to share experiences with your fellow participants.

15:45 - 16:15

16:1517:15

Cyber risk and the evolving threat landscape

16:15 - 17:15

  • 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?

Business continuity planning in light of Covid-19

13:0014:00

Building resilience through an effective BCP

13:00 - 14:00

  • Building and managing an effective BCP programme
  • Testing and exercising the BC plans to strengthen resilience
  • Measures & protocols during Covid-19

14:0014:15

Break

14:00 - 14:15

14:1515:15

Responding to disruptive events - invoking BCP during Covid-19

14:15 - 15:15

  • Challenges faced during invocation of BCP
  • What were the communication issues with mobile/networks/power breakdown?
  • What was the impact of working from Backup/Alternate working site?
  • Discussion: how have BCP/back-up arrangements changed over the past year?

15:1515:30

Break

15:15 - 15:30

15:3016:30

Reputation risk and building trust with employees, clients, shareholders, regulators and the public

15:30 - 16:30

  • Key factors and dynamics affecting a central banks reputation
  • Examples of how to avoid reputational damage through revisionary frameworks and reforms
  • Methods and tools of how board members can view operational, financial and reputational risks
  • Discussion: establishing the tools that will be used to identify and monitor reputational risks

Risk management: conduct and culture

13:0014:00

How central counterparties dealt with Covid-19

13:00 - 14:00

  • 2020 saw unprecedented market moves due to COVID-19 and financial market infrastructures including central counterparties needed to respond
  • Total margins were raised by CCPs worldwide due to the high volatility but needed to be balanced to mitigate procyclical effects
  • Pandemic and cyber crisis management exercises (conducted some years ago) revealed substantial operational risk issues but the experience so far has been positive

14:0014:15

Break

14:00 - 14:15

14:1515:15

Enabling the risk function: moving towards an integrated corporate management function

14:15 - 15:15

  • 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: where and how are risks managed in participants’ central banks?
Janet Cosier

Former advisor on strategic planning and risk management

Former 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.

15:1515:45

Networking break
An opportunity to share experiences with your fellow participants.

15:15 - 15:45

15:4516:45

Enhancing the culture of risk management: effective steps for successful implementation

15:45 - 16:45

  • Key building blocks of the risk awareness culture
  • Examples of strategies to strengthen the risk awareness culture in central banks
  • The role of risk awareness in organisational resilience
  • Discussion: how to build a risk culture for 2021 and beyond
Janet Cosier

Former advisor on strategic planning and risk management

Former 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.

Risk management tools and methodologies

13:0014:00

Modernising KRIs and risk appetite for central banks

13:00 - 14:00

  • A risk appetite statement: use of this framework in a central bank
  • How this framework can be a means to improve risk culture and awareness
  • Achieving sufficient granularity to cover all the main risks of the institution
  • Case study: how a central bank covers this issue; the pros and cons: an example from the Bank of Portugal

14:0014:15

Break

14:00 - 14:15

14:1515:15

The risk management function: resourcing and institutional organisation

14:15 - 15:15

  • 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

15:1515:30

Break

15:15 - 15:30

15:3016:15

Closing remarks and delegate action plans

15:30 - 16:15

  • 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
Janet Cosier

Former advisor on strategic planning and risk management

Former 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

At the conclusion of the training, participants will be able to:

  • Identify ways to improve the framework for risk management across the central bank
  • Recognise the emerging risks in the cyber threat landscape and how to create a cyber resilience function
  • Enhance their suite of KRIs and processes around expressing the risk appetite
  • Assess the resourcing needs and reporting for their risk management function
  • Effectively design BCP for post-Covid workplace

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Janet Cosier

Former advisor on strategic planning and risk management

Former 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.