Risk Management for Central Banks

Why Attend

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 new risks resulting from this. It has highlighted new areas of interconnectedness – and disconnects. It has strained well-thought-through contingency plans. For those charged with managing risks in a central bank, 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, “Risk Management for Central Banks” will give participants an understanding of the tools and methodologies used to create sound a risk management framework. Expert speakers will demonstrate how to turn theory and lessons from other sectors into central banking practice in monitoring and mitigating risks. From an institutional perspective, the course shows how to build and leverage an effective relationship between risk, internal audit and compliance. Each day will feature three hours of expert-led live content to maximise the opportunity to share and learn. The Course chair will ensure participants have opportunities to network throughout the programme.

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Course Objectives


  • By the end of the training course, participants will be able to:
  • • Understand how to create a framework for managing a wide variety of risks and enhance the culture of risk management
  • • Define a way that internal audit and risk management can work together
  • • Recognise the emerging risks in the cyber threat landscape and how to create a cyber resilience function
  • • Understand the operational risk issues with use of central counterparties
  • • Establish the tools that will be used to identify and monitor reputational risks


Target Audience


Central Bankers only

The risk management function and the current challenges it faces

Course introduction and welcome

  • Introductions and welcome from the chairperson
  • Overview of the training course programme and speakers
  • Discussion of participant expectations and areas of particular interest

 

What risks and challenges do central banks face?

  • 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

 

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

  • 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?

 

Cyber risk and the evolving threat landscape

  • 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

Building resilience through an effective BCP

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

 

Responding to disruptive events - invoking BCP during Covid-19

  • 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?

 

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

  • 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

How central counterparties dealt with Covid-19

  • 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

 

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

  • 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?

 

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

  • 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

Risk management tools and methodologies

Closing remarks and delegate action plans

  • 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

 

Modernizing KRIs and risk appetite for central banks

  • 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

 

The risk management function: resourcing and institutional organization

  • 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

Implementation Workshop

Benefits of attending the Implementation Workshop:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Step 1: Select Prefered Schedule


Date Fee (GHS)

Step 2: Choose Registration Type