Risk Management for Central Banks 2023
Risk Management for Central Banks
Agenda
The risk management function and the current challenges it faces
14:00 – 14:30
Risk Management course introduction and Risk Management Benchmarking survey results
Course introduction session led by the chair
- Introductions and welcome from the chairperson
- Overview of the Central Banking Risk Management benchmarking results
- Overview of the training course
- Discussion of the delegate expectations
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.
14:30 – 15:30
Examining the opportunities, risks and challenges facing central banks in 2023 and beyond
- 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 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.
15:30 – 15:45
Coffee break
15:45 – 16:45
What it takes to operate in today’s multi mandate environment: a governor’s perspective
- Overview of central banks evolving mandates in 2023
- Moving forward, what are the implications for external responsibilities and internal functioning?
- What are the impacts of the evolving mandates and what this means for the central bank
- Interactive discussion: experiences from participants’ home jurisdictions
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.
16:45 – 17:15
17:15 – 18:15
Enabling the risk function: moving towards an integrated corporate management function
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Overview of new roles, functions and responsibilities of risk management departments
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Impacts of organisational developments on central bank risk management
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Key components of a robust and responsive risk management framework
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Discussion: where and how are risks managed in participants’ central banks?
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.
Enhancing the risk management toolkit
14:00 – 15:00
Towards sustainability: risk perspectives on greening central banking
- 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
Faisal Sarwar is currently working with State Bank of Pakistan as a Deputy Director-Finance department. He is expertise in the area of Treasury Market (Money, Foreign & Bond/Fixed Income), Finance and Gold Market. He manages risk against these markets. Mr. Faisal has an experience of over 14 years working in different segments of the financial sector of Pakistan including Commercial banks, Financial Institution and the Central Bank.
15:00 – 15:15
Coffee break
15:15 – 16:15
Embedding organisational resilience in the digital era: the role of strategic planning
- Key features of driving business 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
- Augmenting your toolkit for dealing with digital enablement
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.
16:15 – 16:45
16:45 – 17:45
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
Tackling new risks
14:00 – 15:00
Risk management approaches to mitigate escalating inflation and interest rate hikes
Greg Carpenter is the AVP of Unified Communications for the Federal Reserve. His previous roles span across multiple government organizations including The Federal Reserve Bank of Cleveland, NASA, United States Army Space Command, and United States Air Force Space Command. In these organizations Greg has led risk management, information security, and business continuity functions. The blend of Greg’s background and a focus on customer experience provides a unique perspective to risk management and technology survivability approaches.
15:00 – 15:15
Coffee break
15:15 – 16:15
Latest approaches to the risk appetite framework 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
José graduated in Civil Engineering from Universidade Federal de Pernambuco (1998), an MSc from the Universidade de Brasilia (2002) and doctorate in Business Administration and Quantitative Methods - Universidad Carlos III de Madrid (2007). He is a FRM (Financial Risk Manager) certified by GARP - Global Association of Risk Professionals and is currently Head of the Risk Department at the Central Bank of Brazil. His line of research is related to the strategic asset allocation, portfolio optimization, risk management and behavioral finance. José has published several papers in internationally recognized journals such as: Journal of Banking and Finance, International Journal of Finance and Economics, Applied Financial Economics, European Journal of Finance and Journal of Risk Management in Financial Institutions.
16:15 – 16:45
16:45 – 17:45
Reshaping your cyber risk strategy and the evolving threat landscape
- Overview of the current cyber threat landscape
- Recognising emerging cyber threats and how to build true cyber resilience
- 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 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
14:00 – 15:00
Addressing risks, threats and strengthening governance function: a case study in integration and solutions
- Explore effective solutions to manage risks and other pressing issues faced by communities
- Explore a case study of a central bank enhancing governance through supervision frameworks and recovery plans
- Learn governance integration strategies for security, climate resilience, emphasizing collaboration and outward focus
Jan Frait was born on 28 November 1965 in Slavičín. He graduated from the Faculty of Economics at VŠB-Technical University of Ostrava in 1988, where he also completed his postgraduate studies in 1995. The same year he received the Young Economist of the Year award from the Czech Economic Society for his paper Portfolio Model of the Balance of Payments (and its Application to the Czech Republic in 1992–1995). Since 1990, he has lectured at the Economic Faculty of VŠB-TU Ostrava, where he qualified as an Associate Professor in Economics in 1998 and was appointed Professor of Economics in 2002. In 2000 the President of the Czech Republic appointed him as a member of the CNB Bank Board. After his mandate expired in 2006, he stayed with the CNB, working first as an adviser to the Board and later as Deputy Executive Director of the Economic Research Department responsible for financial stability analysis. He became Executive Director of the independent Financial Stability Department in 2010 and of the multi-divisional Financial Stability Department in 2018. In these posts, he represented the CNB on the European Central Bank’s Banking Supervision Committee, among other responsibilities. From 1999 to 2007 he was a member of the Board of Directors of the Czech Economic Society (CSE) and from December 2001 to January 2004 he held the post of CSE President. He has long worked as editor of Finance a úvěr – The Czech Journal of Economics and Finance. He specialises mainly in macroeconomics, financial stability, monetary theory and the international financial system. He has an extensive publication record on these topics in Czech and international journals.
He became a member of the CNB Bank Board on 1 July 2022. Jan Frait has served as CNB Deputy Governor since 13 February 2023.
15:00 – 15:15
Coffee break
15:15 – 16:45
Workshop: 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 2022 and beyond
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.
16:45 – 17:00
17:00 – 17:15
Risk Management closing remarks and delegate action plans
- 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
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.
Chair
Chair: 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.