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

Course Chair: John Jussup, former General Counsel and Corporate Secretary, Bank of Canada

Tuesday - 28 May 2019

Institutional Change: Evolving Mandates and New Responsibilities

Operating in a multi-mandate environment: challenges for the governor and board

Patrick Honohan, former Governor, Central Bank of Ireland (invited)

  • Dynamics, trends and forces (re)shaping central bank mandates in 2019
  • Overview of new roles and responsibilities
  • Evolution of demands and expectations for central banks: both internal and external
  • Hands on exercise: “Saying the unsayable” – communication for leadership teams

Climate Risk and Environmental, Social & Governance (ESG) agendas: what can central banks contribute?

Morgan Després, Head of Financial Regulation Policy and Coordination Division, Financial Stability Department, Banque de France

  • Climate change as a new source of local and systemic risks
  • Understanding ESG from a corporate perspective
  • Managing alignment and potential conflicts with existing mandates, practices and cultures
  • Examples of frameworks and structures for incorporating ESG and Climate Risk policies
     

Cyber risk and disruptive technology: how will they impact central banking

Sherif Eldin, Assistant Sub Governor, Banking Computing Security Incident Response Centre, Central Bank of Egypt

  • Implications of cyber risk for central bank mandates, policy functions and corporate services
  • Examples of technologies disrupting “traditional” central bank functions
  • Tips on how boards can oversee and encourage disruptive innovation in a central bank and the financial sector more broadly
  • Hands on exercise: The role of the board in a cyber attack

Wednesday - 29 May 2019

Strengthening Operational Resilience for Increased Performance

Strengthening independence in a changing environment: a chairman’s view

Mohammed Nyaoga, Chairman of the Board, Central Bank of Kenya

  • Overview of key challenges to central bank independence in 2019
  • The role and responsibilities of the board in safeguarding independence
  • Examples of legal and governance measures available and effected
  • Hands on exercise: is accountability the strongest pillar of central bank independence?
     

Risks, risk management and governance challenges in central banks

Christian Durand, former Deputy Comptroller General, Banque de France

  • Examine the environment in which central banks operate and the strategic, financial and operational risks present
  • Assess the financial and operational risks and the risk management frameworks in place
  • Case study of the ECB and Banque de France: tools and best practices against risks
  • Challenges from and solutions to achieve cultural change to ensure the sustainability of good risk management practices

The board and risks: governance, appetite and reporting frameworks

Colin Lawrence, Director and Advisor, Lawrence Risk and Financial

  • Identifying and prioritising risks facing a central bank
  • Examples of strategies and frameworks employed to determine risk appetite or tolerances
  • Operational, financial and conduct: how to balance risks and where can the board add most value
  • Hands on exercise: a risk management story and the red flags missed

 

Establishing a compliance function: scope and organisation

Colin Lawrence, Director and Advisor, Lawrence Risk and Financial

  • Assess and discuss the legal framework for effective central bank function
  • Examples of risks and the challenges it can bring to institutional reform and operational efficiency
  • The role and relationships of stakeholders and the central bank board
  • Discussion: how to manage the inclusion and coordination of different mandates and policy functions

Workshop: the challenging discipline of delegation: responsibilities of the board

Jeremy Farr, General Counsel and Corporate Secretary, Bank of Canada and John Jussup, former General Counsel and Corporate Secretary, Bank of Canada 

  • How central banks structure their board’s roles, activities and responsibilities
  • The role of the secretary of the board
  • Managing information flow for efficient communication
  • Hands on exercise: a board meeting in session

Thursday - 30 May 2019

Crisis Preparedness and Risk Management: Practical Examples

Key features of responsive risk assessment and crisis management: extended workshop session

John Jussup, former General Counsel and Corporate Secretary, Bank of Canada and Jeremy Farr, General Counsel and Corporate Secretary, Bank of Canada
 

  • Understanding the breadth of central bank responsibilities to and within its financial system
  • Key components of a comprehensive risk management framework
  • Crisis management: tools and techniques for coordinating a crisis response
  • Hands on exercise: critiquing risk management structures and plans
  • Case-study on the creation of an executive role for monitoring risks
  • Hands on exercise: good practice central bank risk management: an executive’s guide
     

Crisis management and activation of the business continuity plan: extended workshop session

John Jussup, former General Counsel and Corporate Secretary, Bank of Canada 

  • How to distinguish between a crisis management plan and a business continuity plan
  • Effectively integrate the two management strategies into one framework
  • Hands on exercise: delegates will be challenged with a fast evolving crisis scenario to which they will be expected to respond
  • Case study: when is a crisis not a crisis?
  • Hands on exercise: group will critique responses to earlier scenario, drawing out key learning points for effective crisis management

Friday - 31 May 2019

The Evolution of Accountability

Communications: demonstrating good governance and safeguarding reputation

Mike Hannah, former head of Communications/ Board Secretary, Reserve Bank of New Zealand

  • The role of public surveys in central banks’ communication strategies
  • Overview of the tools and channels applicable for public surveying
  • Evaluation of the results of the Reserve Bank of New Zealand’s 2018 survey on public trust, confidence and understanding of the Bank’s mandates and functions
  • Discussion of methodological approaches used in the analysis

Overseeing innovation: how accountable are central banks for driving change?

Livingstone Morrison, Deputy Governor, Bank of Jamaica

  • How central banks can change to better appreciate and utilise innovation
  • Ensuring inclusive innovation: the central bank as a catalyst
  • Hubs, Sandboxes and incubators: use, funding and outputs
  • Case study: disruptive innovation in central bank and financial sectors

Delegate action points and course conclusion

Led by the chair, John Jussup

  • 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