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

Operating in a multi-mandate environment: a governor’s perspective

14:15 - 15:15

  • Overview of central banks evolving mandate in 2022
  • Implication for external responsibilities and internal functioning
  • Impacts of the evolving mandates and what this means for the central bank
  • Discussion: experiences from participants’ home jurisdictions
Marko Škreb

Former governor

Croatian National Bank

Marko Škreb is a former governor of the Croatian National Bank. Currently he is Central banking lead on a Financial sector reform project (FINRA) in Bosnia and Herzegovina, financed by USAID. Before that he was resident project manager for Canada-IMF Capacity building project at the National Bank of Ukraine. He moved to Kyiv from his position as advisor at the International Monetary Fund’s Regional Technical Assistance centre in Accra, Ghana.  Before that, he was chief economist and strategist at the second largest commercial bank in Croatia. Mr. Skreb started his professional career teaching at the University of Zagreb. Following academic vocation he joined the Croatian central bank, first as research and statistics director and later on as governor (from 1996 to 2000). In 1997 he was awarded the Central European Annual Awards for Excellence - Best Central Bank Governor by the Banker. Since 2000 he worked as a consultant for the International Monetary Fund and the World Bank in numerous countries, mostly in South-East Europe. He also worked at the Independent Evaluation Office of the IMF in Washington DC in the period 2004-2005. Mr Škreb published a number of articles and edited books, focusing on transition questions and financial issues.

15:4516:15

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

15:45 - 16:15

16:1517:15

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
Jill Vardy

Advisor (communications) and chief of staff

Bank of Canada

Jill Vardy was appointed Advisor (Communications) and Chief of Staff, effective 3 January 2017. In this role, she provides strategic communications advice on major corporate and policy-related issues and works closely with Executive Council and department chiefs to maximize the Governor’s schedule and work priorities. She also plays a key role in strategic thinking and engagement with the Bank’s partners and stakeholders.

Ms. Vardy spent 14 years covering economics, finance, government policy and the technology sector for The Financial Post (later incorporated into the National Post). After covering economics in Toronto, she spent six years as a Parliament Hill reporter in Ottawa and six years as the National Post’s senior technology writer and columnist. In addition to writing, she also appeared frequently as a business panelist on CBC radio and television and taught economics and business journalism at Carleton University.

Ms. Vardy joined the Bank of Canada’s Communications Department in 2002 as a speechwriter for the Governor and other members of Governing Council. She became Director, Planning and Public Affairs, in 2006. In 2008, she served as the department’s Acting Chief and was then named Deputy Chief. She became Chief of Communications in December 2010, a position she held until her current appointment.

Born in Corner Brook, Newfoundland, Ms. Vardy attended Mount Allison University and earned an honours degree in journalism from Carleton University.

Enhancing the risk management toolkit

13:0014:00

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.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Building organisational resilience: the role of strategic planning

14:15 - 15:15

  • Key features of organisational resilience as a strategic goal
  • Impact of factors such as corporate culture, risk appetite and risk tolerance
  • Examples of tools and frameworks for strategic monitoring and continuous assessment
  • Role of interdepartmental cooperation and coordination
Amirthalingam Kanagalingam

Deputy director, business technology

Bank Negara Malaysia

Kanagalingam is currently a Deputy Director in the Business Technology Department of Bank Negara Malaysia. He is responsible for strategy and governance matters, with a focus on planning, performance and change management. Before this he was responsible for the Central Bank’s organisational strategy and business planning function. He joined the Bank in 1990 and over the 30 years has served in several capacities, including bank supervision, crisis management, international capacity building and organizational development. He holds an MBA from London Business School.

15:1515:30

Break

15:15 - 15:30

15:3016:30

A risk appetite framework 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
Gabriel Andrade

Head of the risk management department

Bank of Portugal

Gabriel Andrade is the head of the Risk Management Department at Banco de Portugal, which he has been responsible for since October 2014. He is currently the Chair of the Eurosystem Resilience Task Force He is also a member of the International Operational Risk Working Group (IORWG) and works regularly in technical assistance missions of the International Monetary Fund (IMF) to Central Banks. From 1987 to 2013, Mr. Andrade worked in the private banking sector, including 20 years with Barclays Bank. He holds an Economics degree from the Lisbon School of Economics (ISE), as well as numerous post-graduate degrees elsewhere, including Universidade Católica Portuguesa (UCP), AESE Business school (AESE / IESE) and Universidade Nova de Lisboa (UNL).

Tackling new risks

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
Shehzad Ali Sharif

Joint director – strategic planning department

State Bank of Pakistan

Shehzad Ali Sharif currently working as a Senior Joint Director has more than a decade and a half of working experience with the Central Bank. His main areas of expertise are Strategic Planning, Annual Performance Review and BCP. He played a key role in the development of SBP Vision 2020. In the area of BCP, he has been involved since the inception of BCP program in 2006, and has been instrumental in the development of the BCP manuals, policies, establishment of multiple backup sites, conducting BIAs & BCP preparedness Reviews, BCP Communication cards and development of the BCP course curriculum. Due to his accomplishments in the field of BCP at SBP, Mr. Shehzad was awarded with the Organizational Competence Award. Mr. Shehzad holds an engineering degree and an MBA degree.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Towards sustainability: risk perspectives on greening central banking

14:15 - 15:15

  • 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
Audun Grønn

Former special advisor to the governor

Norges Bank

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 (2005-2006). He retired from his position at Norges Bank in July 2021, but continues as a consultant on a part-time basis.

15:1515:45

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

15:15 - 15:45

15:4516:45

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?
Paul Chammas

Managing partner

CLARICE SAS

Paul Chammas is a Technology Risk & Cybersecurity Consultant and Auditor, with more than 12 years of experience within big consulting firms. He co-founded in 2018 CLARICE, a startup specialized in Innovation & Risk Management, then co-founded in 2021 QuRISK, a startup specialized in Quantum Computing & Risk Management.

Paul holds a Telecommunication Engineering diploma from EFREI Paris and an Advanced Master in Technology Management from HEC Paris. Paul is certified CISA, CRISC and ISO27005.

Risk management in practice

13:0014:00

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

14:45 - 15:45

  • Internal audit – the what and whys
  • 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.

14:0014:15

Break

14:00 - 14:15

14:1515:45

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 2022 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.

15:4516:00

Break

15:15 - 15:30

16:0016:45

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

Thumbnail
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.