Risk Management
Risk Management Benchmarks 2025 report – mind the techno-political gap
Responses show central banks’ shifting priorities as volatility increases
Central banks keep ISO 31000 and COSO-ERM as main approaches
Principles tend to vary slightly by central banks’ risk management philosophies
Central banks typically employ detailed business continuity plans
But institutional risk appetite is less commonly included, especially in Europe
A third of central banks lack key risk indicators
Most of those with KRIs conduct monitoring and employ feedback loops
Direct system breaches are top cyber risk
Main threats vary by cyber security staffing and economic groupings
Over 60% of risk departments face staff and resource shortages
Teams that face hiring challenges generally have to make do with smaller risk departments
One-fifth of central banks lack defined risk tolerance and strategy
But majority of respondents apply risk management principles to policies and processes
Adoption of governance, risk and compliance systems still partial
Respondents mention main service providers and plans to upgrade
Decentralised risk teams less likely to have chief risk officers
CROs are also less common at Asia-Pacific and European central banks
Credit and counterparty risk gains relevance as most covered risk
But central banks’ top risks vary by geographical regions
Centralised risk teams tend to have more sub-units
Size of central banks with climate change risk unit steadies at 12%
Financial and op risk divisions maintain largest staff
Upper-middle income nations tend to have different staffing priorities
Repo and FX markets buck year-end crunch fears
Anticipations of changes to the Fed’s reverse repo programme contributed to easing balance sheet pressures
More than half of US organisations ‘vulnerable to IT failure’
New research underlines cyber risks to central banks following CrowdStrike IT outage
RBI calls for better compliance and risk management in NBFCs
Compliance should transcend box ticking and delve deeper, deputy governor says
Risk Management Benchmarks 2024 – model banks analysis
Central banks focus on different kinds of risk and operate varied management structures
Risk Management Benchmarks 2024 – executive summary
Data reveals central banks’ risk governance structures and strategies, as well as the top risks in 2024
Risk Management Benchmarks 2024 report – tech and turbulence
Data reveals central banks’ risk governance structures and strategies, as well as the top risks in 2024
ISO 31000 and COSO–ERM remain central banks’ leading standards
Central banks from high income countries less likely to use COSO–ERM
Mean risk management salary greater in high income countries
Salaries average $72,738 in rich countries but $33,464 in upper-middle income nations
Most central banks have difficulty hiring skilled cyber security staff
Respondents highlight pay disparity, skills gap and technological advancements as factors