Central Banking, Risk Management and Governance (2-weeks)

What you will learn

By the end of this course, you will be able to implement a successful strategy that enables you to:

• Explore the historical development of central banks and financial systems, their core mandates (price stability, sustainable growth, financial stability), and how these roles evolved across global and regional contexts.
• Understand central banking functions including monetary policy, lender of last resort, and financial system oversight; review governance models, independence, boards and committees, and institutional accountability.
• Understand and compare how central banks operate under different mandates across global models, and evaluate how these mandates shape their functions, priorities, and governance structures.
• Learn how interest rates, open market operations, and reserve requirements influence economies, and explore newer tools like quantitative easing, negative interest rates, and yield curve control (YCC), with a case study on the Bank of Japan.
• - Examine how central banks responded to the 2008 financial crisis and the COVID-19 pandemic, comparing tools, timing, and effectiveness across different contexts.
• Analyse the use of conventional and unconventional monetary policy tools, assess central bank responses to financial crises, and evaluate the impact of these policies on economic stability and recovery.
• Understand the importance of financial stability, how to identify systemic risk through indicators like credit growth and leverage, and explore macro-risk tools such as stress testing and early warning systems.
• Learn to interpret Financial Stability Reports (FSRs), communicate risks effectively, and apply composite indicators to monitor market vulnerabilities.
• Explore principles of good governance, transparency, and ethical integrity in central banking, and take part in a crisis scenario where participants draft a strategic press release during a reputational risk event.
• Dive into risk-based supervision, the Basel Core Principles, and oversight of systemically important financial institutions (SIFIs), while addressing the evolving challenges of fintech, shadow banking, and cross-border risks.
• Gain practical insight into AML and KYC obligations, FATF recommendations, and the division of roles between central banks and other supervisory authorities.
• Understand the role of Supervisory Technologies (SupTech) in enhancing regulatory oversight, and evaluate how innovation is transforming supervisory practices, data collection, and compliance efficiency in modern financial systems.
• Understand how central bank mandates are evolving in response to sustainability, digitalisation, and societal expectations.
• Apply foresight tools and scenario analysis to enhance long-term strategic planning under conditions of uncertainty.
• Evaluate the implications of geopolitical trends and systemic risks on financial stability and central bank strategy.
• Assess global CBDC developments and understand design trade-offs, implementation strategies, and regulatory considerations.
• Analyse the risks and policy implications of decentralised finance and cryptoassets for central banks and monetary control.
• Explore cross-border payment innovations, interoperability models, and insights from BIS and other international pilots.
• Examine how AI and automation are reshaping internal processes and decision-making within central banks.
• Strengthen knowledge of digital risk management, including cyber threats, AML/CFT compliance, and resilience frameworks.
• Design strategies to build institutional capabilities, attract digital talent, and future-proof central bank workforces.
• Evaluate how climate-related risks are being incorporated into monetary operations and central bank balance sheets.
• Understand approaches for integrating ESG considerations into supervision, disclosures, and risk assessments.
• Assess how green fintech and digital platforms are enabling sustainable finance and central bank innovation.