Central Bank Governance and the Role of Nonfinancial Risk Management

Author/Editor: Ashraf Khan
Publication Date: February 23, 2016
Electronic Access: Free Full text (PDF file size is 1,743KB).
Use the free Adobe Acrobat Reader to view this PDF file

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.
Series: Working Paper No. 16/34
Subject(s): Central banks | Risk management | Central bank governance | Central bank operations | Operational risk | Internal audit

Publication Date: February 23, 2016
ISBN/ISSN: 9781498376051/1018-5941 Format: Paper
Stock No: WPIEA2016034 Pages: 51
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to publications@imf.org