IT Governance and Strategy for Central Banks

Since 1999, Central Banking Publications has organised annual residential training courses/seminars, which have been attended by more than 5,000 central bankers and supervisors from over 140 countries. IT Governance and Strategy for Central Banks 8 11 September 2015, Christ s College, Cambridge Course Chairman Chris Gale Former Senior Vice President Federal Reserve Bank of Boston Series Advisor Charles Goodhart Professor Emeritus London School of Economics Financial Markets Group www.centralbanking.com/cambridgebr

Dear Delegate, IT strategy needs to be embedded in the business strategy. The necessary transformations must not be an end in themselves from an IT perspective, but need to be strategically anchored and founded on business policy. Joachim Nagel, Member of the Executive Board, Deutsche Bundesbank, December 2014 What business are central banks in? The answer is not monetary policy or financial stability, but information. It follows then that IT fulfils crucial roles in nearly all their processes and has developed from a technological support function into a value-adding business unit. With this transformation and the rapidly changing technology landscape, good IT governance has become vital: not only to ensure the IT department s ability to manage a complex set of systems, but also to ensure it contributes to the central bank s overall goals, and is acknowledged for doing so. This course, IT Governance for Central Banks is designed to equip central bankers to meet these challenges. The four-day programme of interactive roundtable seminars and workshops offers practical insights on issues such as protecting big data and vital services against cyber-attacks, managing outsourcing contracts with third parties or developing a reliable business continuity strategy, and addresses strategic questions of organisation and resourcing. The panel of expert speakers combines practical central banking experience and expertise in the technical aspects as well as views from private sector experts. All discussions are held in roundtable format to encourage participants to share their experiences and debate the pressing issues in their field. This format, as more than 5,000 central bankers and regulators can attest, encourages delegates to quiz panellists, raise issues and discuss solutions to the specific challenges they face. We look forward to welcoming you to Cambridge on September 8. Yours sincerely, Key sessions focus on: Cyber security: mobile technology and security awareness The IT and business alignment challenge Cloud computing: the case for and against Outsourcing IT functions IT governance framework(s) This is definitely a very informative and engaging course. Various experts and team leaders share their experiences and knowledge. I could recommend this to all who would like to build capacity in IT management Habil Mutende, Head of Information Technology, Central Bank of Kenya Key speakers include: Todd Aadland, Vice President and CIO of the Customer Relations and Support Office FedLine Division, Federal Reserve Bank of Chicago Scott Standen, Quality Management Expert, European Central Bank Helge Mothes, Chief Information Officer, Norges Bank Hatem Ibrahim, Head of Risk, Central Bank of Egypt Robert Pringle, Chairman Central Banking Publications

Thursday Tuesday 818 September April Targeting Raising the Right Profile Practice and the Bar IT Governance and Strategy for Central Banks IT in central banks today: more tasks, more responsibility, and more resources? Led by the chairman, Chris Gale, Former Senior Vice President, Federal Reserve Bank of Boston IT fulfils a vital function in nearly all processes in central banks today. Its remit has expanded from managing a specialised mainframe to overseeing extended enterprises encompassing the cloud, mobile devices and an exponentially growing amount of data. How are central bank IT departments responding to these developments and what particular challenges do they face as public sector organisations? Are institutional setups and budgets keeping pace, and are new risks, such as cyberattacks, being sufficiently addressed? In this introductory session the course chairman will outline the main themes of the seminar and invite participants to share the most pressing challenges and priorities facing their organisations, as well as their own objectives in attending the seminar. The IT and business alignment challenge John Trundle, Chief Executive Officer UK and Ireland, Euroclear and former Head of Business Continuity Division, Bank of England Alignment with the business has repeatedly been identified as a CIO s top priority in recent industry surveys. Central banks are no exception to this, and while the benefits are obvious, the implementation often proves difficult in practice. Key barriers range from the inability to recognise IT as a partner, to constantly changing and often unclear requirements, to poor communication and collaboration between IT and business units. This session, led by the CEO of a major financial market infrastructure who as a central banker led the business continuity division and produced pioneering work on payment systems, will focus on the crucial interaction of governance frameworks, stakeholders, and change management and discuss how they can be channelled in a way that helps leveraging central banks IT investments for strategic advantage. Maintaining effective relationships with stakeholders Speaker to be confirmed Stakeholder management is a crucial factor in successfully managing IT projects and robust relationships with stakeholders are often key to gaining easier buy-in and support for the planning and implementation of present and future projects. But IT leaders have to respond to a variety of often competing demands from a range of different and frequently shifting stakeholders; determining the right strategy to address them is a challenging and often neglected task. In this session the speaker will look at how stakeholder management can be optimised by identifying, prioritising, and effectively managing a department s outside relationships. Delegates will be invited to discuss the key challenges within their respective central banks and formulate solutions as a group. About the course chairman: Christopher Gale is a retired senior vice president of the Federal Reserve Bank who has held leadership positions in the Federal Reserve for Information Technology, Financial Management, Strategic Planning, Facilities Management and Law Enforcement. From 2012 2014 he chaired the Fed s Technology Services Council, the senior executive information technology steering committee for all 12 Reserve Banks. Before joining the Bank, he held management positions at large mutual fund, public accounting, savings and loan and commercial bank organizations. Chris received his BS in Finance from Northeastern University in 1982 and his MBA from Northeastern in 1988.

Cambridge, 2015 Wednesday 9 September New Approaches to IT Strategy and Resourcing Outsourcing IT functions: a case study of Norway Helge Mothes, Chief Information Officer, Norges Bank An ever-expanding array of tasks has led many central banks to consider outsourcing specific IT projects and applications or entire IT units to third parties. Outsourcing can help central banks to (re-) focus on core activities, save costs and meet risk management objectives that have become extremely difficult to achieve efficiently in-house. However, the transition period to outsourcing poses major organisational challenges and the engagement of third parties raises new issues such as supply chain risks or the choice of the optimal outsourcing partner. The speaker will address key factors that need to be considered when approaching outsourcing and share lessons learned from Norges Bank s IT outsourcing project. Workshop: better contracts with third parties Leishen Pillay, Senior Associate, Hogan Lovell s (invited) This workshop will build on discussions in the previous session on outsourcing by addressing in depth the design of IT contracts with third parties. The speaker will show how IT contracts can be used to further and enforce IT governance objectives in an organisation by being designed to help mitigate IT risks, reduce and control costs, and increase a central bank s benefit from IT infrastructure and services. Particular attention will be given to ensuring compliance with policies and procedures as well as the consistency in service delivery through the use of targets, meetings and reporting. Cloud computing: the case for and against Richard Hall, Chief Executive Officer, CloudOrigin, and Helge Mothes, Chief Information Officer, Norges Bank Central banks are being pushed to the limits of their processing and storage capacity by ever-greater demands for more granular data stemming from a broader macroprudential range of responsibilities. Cloud computing allows central banks to modernise their servers and storage systems in a cost effective way. But how secure can sensitive central bank data be if it is no longer kept on bank premises? In this session the speakers will debate benefits, limitations and the array of potential legal and security risks involved in cloud computing from a central bank s perspective. Central banking in the age of Big Data John Finch, Chief Information Officer, Bank of England (invited) A common denominator underpins the wide variety of regulatory initiatives facing central banks: data. With so much data available from a variety of different sources, how can central bank IT departments ensure that the right data is captured, and more importantly, communicated accurately to relevant stakeholders? In this session the speaker will outline the processes and systems required to make the most of information assets. Discussion will focus on how data capture, through the use of IT, can contribute positively towards mitigating financial instability. Recruiting and training IT professionals James D. McKeen, Professor Emeritus, IT Strategy, Queen s School of Business (invited) As it has developed from a support function into a value-adding business unit, the skillsets needed in IT have changed too. Traditional technical IT competencies are still very much in demand but especially in IT management functions, leadership, communication, as well as analytical and strategic skills, have become essential. In this session the speaker will discuss approaches to determining the skillsets needed, and recruiting and retaining accordingly. Discussion will focus on how talent management and training can be implemented and the specific demands IT places on this. Very fruitful and insightful seminar and group of speakers. Will very likely recommend to other participants Donnex Chitsonga, Director - Information and Communication Technology, Reserve Bank of Malawi

IT Governance and Strategy for Central Banks Thursday 10 September Risk Management and Cyber Security Cyber Security I: mobile technology and security awareness Todd Aadland, Vice President, Federal Reserve Bank of Chicago Mobile technology has changed the way the world does business. It is commonplace for employees to remain connected and productive outside normal working hours. This adds value but also risk. Indeed, granting greater mobility to employees without compromising the security of data has become one of the most pressing challenges in IT security today. Organisations responses range from incorporating new mobile security strategies, to completely forbidding the use of mobile devices, to simply ignoring the problem. For central banks, whose information is perhaps the most market sensitive in the world, this is a particularly acute problem. In this session, the first of two dedicated to this topic and led by a noted expert in the field, the speaker will discuss different approaches to mobile technology and BYOD (bring your own device) as well as employee security awareness. Cyber Security II: dealing with cyber and denial of service attacks Todd Aadland With cyber-attacks on central banks becoming more and more common, not if but when has become the mantra for those charged with ensuring cyber security. Increasingly sophisticated approaches, from highly targeted spear phishing to complex DDoS attacks, highlight the broad range of risks, and thus broad range of measures, that central banks need to consider to effectively combat cyber-attacks. This session will provide an overview of the current cyber threat landscape, an assessment of how central bank defences have stood up in recent attacks and discuss effective information security strategies. IT governance framework(s) 2.0 Scott Standen, Quality Management Expert, European Central Bank With IT being used daily by virtually all staff and across all departments of a central bank, IT governance has become an integral part of enterprise governance and vital to ensuring IT s close strategic alignment with business goals, improved cost efficiency and reduced risk. How can the optimal approach be chosen and how can diverse or even competing governance models already in place be integrated into a single comprehensive framework? In this session the speaker will give an overview of IT governance models available and invite participants to share the experiences of their central banks with governance frameworks. Preparing for the worst: ensuring business continuity through effective planning Hatem Ibrahim, Head of Risk, Central Bank of Egypt Central banks need an effective business continuity plan (BCP) in place to ensure continuity, resumption and recovery of critical IT infrastructure and business processes to limit the impact of a disaster and the potential damage to the national economy and the central bank s reputation. This session will look in-depth at designing, testing, and assessing business recovery infrastructure and analyse the decision-making processes involved. Lessons will be drawn out on what services, functions and facilities a central bank should prioritise, and how frequent traps of over-prescription and over-specification can be avoided. Past attendees include: Bank of Algeria Reserve Bank of Australia Austrian National Bank Central Bank of Barbados National Bank of Belgium Central Bank of Brazil British Virgin Islands Financial Services Commission Bank of Canada Central Bank of Colombia Czech National Bank Banque de France European Central Bank Bank of Ghana Hong Kong Monetary Authority Reserve Bank of India Bank Indonesia Bank of Jamaica Central Bank of Kenya Bank of Korea Bank Negara Malaysia Central Bank of Nigeria Central Bank of Oman Central Bank of Paraguay Central Bank of the Philippines National Bank of Poland Bank of Portugal SAMA Monetary Authority of Singapore South African Reserve Bank Bank of Spain Central Bank of Sri Lanka Sveriges Riksbank Bank of Thailand Bank of England Federal Reserve Bank of New York Bank of Zambia

Cambridge, 2015 Friday 11 September Budgeting for Better Performance Budgeting IT projects and cost-optimisation: efficiently allocating scarce resources Led by the chair, Chris Gale Year after year, surveys report an increasing share of organisations overall budgets devoted to IT; and central banks are no exception to this trend. But while IT budgets have increased considerably, they nevertheless often fail to keep pace with the simultaneous growth of tasks and responsibilities handed to the IT function. Scarce resources need to be prioritised and budget allocation optimised in order for IT departments to deliver on time, on budget, and to the satisfaction of their stakeholders. How can central banks ensure optimal investment in and prioritisation of IT projects? The group will be invited to compare the institutional setups and processes for IT budgeting in place in their organisations and discuss key concerns and lessons learnt. Measuring and Reporting IT performance Scott Standen, Quality Management Expert, European Central Bank A main concern of IT managers is how their department s reputation as a classic cost centre can be transformed into that of a business enabler and driver of competitive advantage. In this session the speaker will give an overview of strategies and tools that can help IT justify their budgets and demonstrate their contribution to the organisation s overall performance. This includes a comparison of available performance indicators and measurement systems followed by a discussion of their suitability for implementation in different institutional settings. Participants will be encouraged to share their experience in measuring and communicating IT performance to various stakeholders, including the board. Lessons learnt and key takeaways Concluding session led by the chair, Chris Gale To conclude the course the chairman will summarise highlights and key points from presentations and discussions of the four day seminar. The session will provide participants with an opportunity to reassess and discuss what they consider to be the main priorities for their departments. Delegates will be invited to draw comparisons to their own experiences, reflect on how key lessons learnt can be put into practice in their home organisations and what practical and strategic challenges and issues they might face in doing so. CBP s Autumn Series 2015 features the following seminars: Risk Management for Central Banks Government Debt Management: New Trends and Challenges Effective Oversight of Financial Market Infrastructures Financial Regulation and Supervision: Design and Implementation IT Governance and Strategy for Central Banks Library and Knowledge Management: Supporting Innovation and Mission Financial Independence, Reporting and Accountability for Central Banks Communications and External Relations for Central Banks Economic Analysis for Macroprudential and Monetary Policymaking Human Resources: Facilitating Change and Performance The Changing Framework of Monetary Operations and Collateral Management Legal Risks and Good Governance for Central Banks

IT Governance and Strategy for Central Banks Booking details Course fee: 2,900 4-day (3 nights) residential course Course fee includes: en-suite accommodation, meals, refreshments, course documentation and a complimentary copy of the most recent issue of the Central Banking journal. Substitute delegates can be accepted should the registered delegate be unable to attend; please let us know prior to the event. How to book There is a booking form overleaf. Please use one of the following methods to book your place: Online: www.centralbanking.com/cambridgebr Call: Clare Hope on +44 (0) 207 3169152 Email: conference@centralbanking.com Fax: Attention of Central Banking Events to +44 (0)207 504 3730 Post: Central Banking Publications Incisive Media 28 29 Haymarket London SW1Y 4RX, UK About Central Banking Publications About Central Banking Publications Central Banking Publications events division is the leading independent organiser of public policy seminars/training courses for the official sector. Since 1999, CBP has hosted roundtable seminars and training courses for over 5,000 senior policymakers from central banks, ministries of finance and financial regulatory agencies around the world. Senior officials from more than 140 countries have attended these meetings over the past decade and a half. The Venue Christ s College, St Andrew s Street, Cambridge, CB2 3BU, UK Christ s College is one of England s oldest university colleges and traces its origins back to 1439 when it was founded by William Byngham as God s house and adopted by King Henry VI. The college is conveniently situated in the heart of Cambridge surrounded by all the historical sites, and is one hour by train from London.

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