Risk Management for Banking and Securities Regulators

From 10 to 15 November 2013, talented mid-level staff involved in regulatory and supervisory activities at central banks, supervisory authorities and securities regulators, who seek senior positions and want to share best practices and expand their knowledge to be better prepared for future financial crises, were invited to attend the conference Risk Management for Banking and Securities Regulators: International Standards and Risk Management. Regulators and supervisors from ODA-eligible countries and Eastern Europe were also encouraged to attend this seven day-training that was jointly organized by the Toronto Centre and GIZ.

The program examined topics including:

  • dealing with struggling and failing financial institutions,
  • inward generated risk related to offshore fraud,
  • Basel III, its risk management aspects and implementation challenges as well as expectations from a supervisor’s perspective,
  • the principles on financial market infrastructures and the prevention of systemic risks,
  • issues on capital markets abuse, conflicts of interest and fraud, and asset hiding, using a case study from Croatia,
  • funding illiquidity and other short term financing issues.

The program was set up to be highly interactive, using case studies, exercises, and a full-day crisis simulation to explore how banking supervisors and securities regulators interact in order to address an emerging crisis that involves the transmission of risk within the financial sector. Participants were trained in developing immediate, medium- and long-term responses to risks arising from regulatory changes and exogenous shocks. The program also provided participants with tools to help them lead change in their organization. Throughout the program each participant developed an action plan elaborating a strategy that addresses a real challenge they face at their home agency.