Central Bank Board: Good Governance, Resilience and Strengthening Independence
01 - 01 Jan, 1970
To Be Determined;
What central banks are asked to do is changing. For institutions that pride themselves on continuity and for whom credibility is their stock-in-trade, this is a pivotal time. Three dynamics are most pressing. Firstly, central banks must contend with the new world of rising inflation and normalising monetary policy. Second, they are being asked to adapt their mandate and therefore policies and structure to tackle climate and offer CBDC. Third, they are having to balance changing culture with retaining identity. Throughout, central bank boards and executives 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.
By the end of the course, participants will be able to:
- Understand the changing demands of stakeholders and how to manage the impact on culture and identity
- Develop good practices in overseeing performance and demonstrating accountability
- Understand how to effectively integrate environmental, social and governance (ESG) initiatives
- Gain insights into CBDC development and implementation
- Create a framework for increasing cyber risk awareness across the institution
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.
Course introduction session led by the chair
- Introductions and welcome from the chairperson
- Overview of the training course
- Discussion of the participant expectations
Operating in a multi-mandate environment: a governor’s perspective
- Dynamics, trends and forces (re)shaping central bank mandates 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
Transformation of the culture and identity of central banks during and post-pandemic
- How is the Covid-19 pandemic impacting central banks?
- The response of central banks to Covid-19: staffing, technology and ways of working
- How has central bank communication been forced to innovate by the pandemic?
- What lessons have central banks leaders taken from the pandemic to ensure their organisations remain adaptable in the future?
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?
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
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
Understanding cyber resilience in an era of digital disruption
- Implications of cyber risk for central bank mandates, policy functions and corporate services
- Cyber-attack: key features of effective crisis management plan and business continuity
- Roles and responsibilities of the board in a cyber-attack crisis
- Discussion: what is the board’s role during a cyber-attack?
Interactive debate: good governance: the role of diversity and inclusion
- What role should diversity and inclusion have in policymaking?
- What are the obstacles to greater diversity and inclusion and how can they be overcome?
- What should the board do to lead by example?
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
Maintaining central bank independence
- Key challenges to central bank independence in 2022
- 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
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?
Communication: demonstrating good governance and safeguarding reputation
- Governance, reputation and legitimacy as the pillars of a resilient central bank
- Role of communications in management of reputational risk
- Examples of strategies and approaches to communication - cross-country comparisons
- Discussion: how to measure the effectiveness of communications?
Closing remarks and participant 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 participants’ home organisations
- Preparation of action points