Central Bank Governance and the Role of Nonfinancial Risk Management

February 23, 2016

Preview Citation

Format: Chicago

Ashraf Khan. Central Bank Governance and the Role of Nonfinancial Risk Management, (USA: International Monetary Fund, 2016) accessed November 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper argues that nonfinancial risk management is an essential element of good governance of central banks. It provides a funnelled analysis, on the basis of selected literature, by (i) presenting an outline of central bank governance in general; (ii) zooming in on internal governance and organization issues of central banks; (iii) highlighting the main issues with nonfinancial risk management; and (iv) ending with recommendations for future work. It shows how attention for nonfinancial risk management has been growing, and how this has amplified the call for better governance of central banks. It stresses that in the area of nonfinancial risk management there are no crucial differences between commercial and central banks: both have people, processes, procedures, and structures. It highlights policy areas to be explored.

Subject: Banking, Central bank governance, Central bank risk management, Central banks, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Internal audit, Operational risk, Public financial management (PFM)

Keywords: A. central bank independence, Aggregate risk appetite statement, Central bank, Central bank activity, Central bank decision-making, Central bank FMIs, Central bank governance, Central bank governance issue, Central bank risk management, Central banks bank run, Company, Financial risk, Financial sector stability, Global, Governance issue, Government, Internal audit, Operational risk, Policy area, Policy independence, Risk culture, Risk management, Transfers profits, WP

Publication Details

Pages:

51
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/034
Stock No:

WPIEA2016034
ISBN:

9781498376051
ISSN:

1018-5941

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