The integrity and resilience of a central bank hinge on a robust framework for risk management and internal audit. This comprehensive training course is designed to equip central bank professionals with the principles, tools, and best practices needed to identify, assess, and mitigate the unique risks they face, from monetary policy execution to market operations and IT security. We will explore how a proactive risk culture and an effective internal audit function are not just compliance requirements, but critical pillars for maintaining institutional credibility and ensuring the effective delivery of the central bank's mandate in a rapidly changing financial landscape.

This five-day program provides a deep dive into the practical implementation of modern risk management frameworks, including governance, control, and assurance. Participants will gain insights into the symbiotic relationship between a strong risk management function and a value-adding internal audit department. Through case studies and practical exercises, attendees will learn how to design effective control mechanisms, conduct risk-based audits, and report findings to executive management and the board. By the end of the course, participants will be able to enhance their institution's operational efficiency and strategic resilience against a wide range of internal and external threats.

Duration: 5 days

Target Audience:

• Central bank internal auditors and compliance officers
• Risk managers and analysts
• Financial regulators and supervisors
• Monetary policy committee members
• Treasury and debt management officials
• Information technology and cybersecurity staff
• Senior management and board members
• Legal and governance professionals
• Economists and policy advisors
• International financial institution staff

Objectives:

• Understand the core principles of risk management in a central bank
• Identify and classify the unique risks faced by central banks
• Design a comprehensive risk governance framework
• Conduct a risk-based internal audit in line with international standards
• Evaluate the effectiveness of internal controls and mitigation strategies
• Interpret the relationship between risk management, audit, and governance
• Formulate strategies for managing operational and reputational risks
• Assess the impact of cybersecurity threats and technological risks
• Develop a framework for reporting risk and audit findings to senior leadership

Course Modules: Module 1: Foundations of Risk Management in Central Banking

• Defining central bank-specific risks
• The three lines of defense model
• Establishing a risk governance framework
• The role of the risk committee
• Integrating risk management into strategic planning

Module 2: Operational and Financial Risk

• Identifying operational risks in market and payment operations
• Managing liquidity and credit risks
• Understanding foreign exchange and interest rate risk
• Mitigating risks in currency issuance and vault operations
• Best practices for business continuity planning

Module 3: Internal Audit Principles and Methodology

• The role and independence of the internal audit function
• Adhering to the International Standards for the Professional Practice of Internal Auditing
• Conducting a risk-based audit plan
• Performing audit engagements from planning to reporting
• The use of data analytics in auditing

Module 4: IT and Cybersecurity Risk

• The unique cybersecurity threats to a central bank
• Auditing IT systems and infrastructure
• Assessing third-party vendor risk
• Implementing a data privacy and protection framework
• The role of IT governance and controls

Module 5: Governance and Compliance Audit

• Auditing institutional governance and board oversight
• Assessing compliance with legal and regulatory frameworks
• The role of audit in fostering an ethical culture
• Auditing anti-money laundering (AML) and counter-terrorist financing (CTF)
• Ensuring adherence to public sector standards

Module 6: Monetary and Financial Stability Risk

• The risks inherent in monetary policy implementation
• Auditing financial stability and macroprudential policy
• Assessing the central bank's role in crisis management
• The link between central bank risk and financial system risk
• Evaluating policy frameworks for effectiveness and risk

Module 7: Reporting and Communication

• The importance of effective audit reporting to management
• Communicating complex risks to non-specialist audiences
• Reporting to the audit committee and board
• Following up on audit findings and recommendations
• Enhancing central bank transparency and accountability

Module 8: Emerging Risks and Future Trends

• The risks associated with climate change and green finance
• The auditing of central bank digital currencies (CBDCs)
• The impact of FinTech and digital innovation on risk
• Auditing data governance and artificial intelligence
• Adapting risk and audit functions to a new normal

Module 9: Case Studies and Practical Application

• Analyzing risk management failures from a central bank perspective
• Learning from successful internal audit interventions
• Developing a risk matrix for a specific central bank function
• Conducting a mock audit interview
• Creating an audit report for a real-world scenario

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.