• What are the key attributes of effective leadership in a modern central bank? • Why is diversity, inclusion and equality important for central banks mandates and leadership? • How can central bank leaders ensure their institutions become more resilient against internal threats and external disruptions? • And what support and contribution should executive and oversight boards be ready to deliver in this regard? In 2021, central banks thought their agendas would be shaped by two global forces: technological innovation and environmental and social governance (ESG) objectives. In both instances, central bankers increasingly recognise the role of their institutions as leaders and exemplars, both at home and on the international stage. Yet they must also prepare to tackle market disruptions and the threats of increasing geopolitical and financial instability in which we have now seen in 2020- 2021 due to Covid-19. In this challenging environment, central bank leaders need to be able to incorporate an understanding of diversity, fintech and climate risk into their existing mandate portfolio, while effectively maintaining and upholding the hard-won reputation and independence of central banks. This course, “Central Bank Board: Good Governance, Resilience and Strengthening Independence” is designed to equip central banker leaders to meet these challenges.
- By the end of the training course, participants will have gained new knowledge and a more comprehensive understanding of:
- • Effective environmental, social and governance (ESG) initiatives
- • Cyber risk and disruptive technology
- • How to demonstrate good governance through communication
- • The boards role in a crisis situation
- • Overseeing central bank performance
- • Governance, legal structure and operational risk
- • The role of the secretary of the board
- • The important of diversity, inclusion and equality for central banks leadership and mandates
Maintaining central bank independence
- Key challenges to central bank independence in 2021
- Role and responsibilities of the board in safeguarding independence
- Examples of legal and governance measures available and effected
- Discussion: accountability and central bank independence as mutual enablers
Digital money issuance, policy and regulation: where do central banks stand?
- Taxonomy of digital money: CBDCs, wholesale digital tokens, stablecoins and crypto assets
- Implications for central banks: policies, roles and responsibilities
- Overview of key financial, operations and regulatory risks
- Discussion: how to educate markets, players and the public?
Financial strength: what does it mean for central banks – and how to achieve it
- Role of accounting in maintaining central banking independence
- What does “financial strength” mean in central banking contexts?
- Implications for the relationship with the public and stakeholders
- Discussion: how to determine the appropriate level of financial resources needed for central banks to perform their functions?
Reporting lines and the role of the secretary of the board
- Examples of frameworks for organising priorities and activities of the board
- Role of the secretary of the board in managing information flow and interdepartmental communication
- Building blocks of effective reporting lines and processes
- Discussion: what is expected of the board secretary in delegates’ home organisations?
Transparency in decision making
- Why is transparency in decision making important?
- How is transparency in decisions making different when shared with government and regulatory bodies?
- How can central banks ensure that decisions do not threaten central bank independence?
- Techniques to shape perception internally and externally and contribute to transparency
The role of the secretary of the board: wrap up and Q&A
- An opportunity for questions and discussion of John's presentations
Good governance: the role of diversity and inclusion
- Diversity and inclusive culture as building blocks of good governance frameworks
- Implications for corporate services and the human resources function
- Examples of projects and initiatives focused on integration of under-represented groups
- Discussion: what should the board do to lead by example?
Understanding and overseeing central bank performance
- What different types of performance can be measured?
- How can central banks use internal control mechanisms to monitor performance of structures, departments and individuals?
- What is the motive for this measurement?
- How does measuring performance link to the role of the board in strategic planning and communication?
Overseeing innovation: how accountable are central banks for driving change?
- 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
FinTech and innovation: what board members need to know
- What is the impact of technology on the oversight framework?
- How can fintech and innovation improve central bank operations?
- Why is financial inclusion important when considering fintech and innovation?
- Examples of central bank use cases
Climate risk and environmental, social & governance (ESG) agendas: what can central banks contribute?
- Climate change as a new source of local and systemic risks
- Managing alignment and potential conflicts with existing mandates, practices and cultures
- Examples of frameworks and structures for incorporating ESG and Climate Risk policies
- Discussion – What are the limits of central bank (and board) intervention
Closing remarks and delegate action plans
- Concluding session led by the chair
- 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
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