Risk management model wins international award

15 January 2016

Reserve Bank’s risk management model wins international award for innovation

International publisher Central Banking Publications has named the Reserve Bank of New Zealand’s Enterprise Risk Management (ERM) model as “Initiative of the Year” in its annual awards.

Reserve Bank Deputy Governor Geoff Bascand said: “ERM is making a real difference to the Bank’s management of risks, and helping us set our priorities for action.

“Our Risk Assessment and Assurance team can be proud of this recognition for the valuable work they lead,” Mr Bascand said.

Head of Risk Assessment and Assurance Steve Gordon said: “ERM has become an integral part of the way that staff and managers at the Bank work. Because it is seen as a critical component of our business operations, it will continue to grow within and across the business.”

The Bank’s ERM approach has provided a foundation for several major projects to enhance the Bank’s operations and reduce organisational risks. It has also helped to identify opportunities, be aware of risks, and plan for the future. . The ERM model was developed in-house after reviewing relevant international standards and researching how other institutions approach risk management. It covers all broad policy, prudential and operational functions within the Bank, and addresses both internal and external risks. The ERM team works closely with the specialist risk function within the Bank’s Financial Markets Department so that aggregated financial markets risks are included as an integral part of the ERM model, which also covers reputational, operational, policy, and legal risks.

The latest award follows last year’s recognition with the Central Bank of the Year award for the Reserve Bank of New Zealand.

Background

Central Banking Publications is a financial publisher owned by Incisive Media specialising in public policy and financial markets, with emphasis on central banks, international financial institutions and financial market infrastructure and regulation.

Central Banking Publications was founded in 1990, and makes a number of annual awards to central banks and market participants over a range of categories.

Judging was by the Central Banking Awards Committee, which is made up of the Central Banking Editorial Team and Editorial Advisory Board, comprising former senior central bank governors from around the world.

More information:

• Central Banking awards - Initiative of the year: Reserve Bank of New Zealand

• Speech - Description of Enterprise Risk Management at the Reserve Bank

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