Risk Management Maturity Assessment at Central Banks

IMF Working Papers, December 27, 2019

Source details

Effective risk management at central banks is best enabled by a sound framework embedded throughout the organization that supports the design and execution of risk management activities.
The Safeguards Assessments Division of the IMF’s Finance Department developed a tool to evaluate risk management practices at a central bank.
The tool facilitates stocktaking of elements that are present and categorizes the function based on its maturity.
Tailored recommendations are provided to the central bank to deliver a roadmap to advance the risk management function.

Purpose: Evaluate risk management practices and maturity at central banks.
Key features:
- Facilitates stocktaking of elements that are present.
- Categorizes the risk management function based on its maturity.
- Produces tailored recommendations as a roadmap for advancement.

Findings (as stated):
- A sound framework embedded throughout the organization best enables effective risk management.
- The maturity categorization assists in identifying gaps and priorities for improvement.
Recommendations:
- Provide tailored recommendations to central banks based on the maturity assessment to advance the risk management function.
- Use the assessment tool as a basis for designing and executing improved risk management activities across the organization.