A DEMANDING ENVIRONMENT

The problem stated: IT for central banks and regulatory agencies
Michael Yorke
Executive Vice-President, Automation Services, Federal Reserve Bank of New York

Central banks and financial regulatory agencies’ public policy mandates impose special demands on the information technology infrastructure which supports them. One of the key decisions which IT managers need to consider is the extent to which technology from commercial vendors can be used in the central bank or regulatory agency environment. Security and reliability considerations must be balanced against factors such as costs and standardisation. This session examines how one of the world’s largest central banks, the Federal Reserve Bank of New York, has approached this trade-off.

IT for financial operations
case studies and roundtable

As custodians of foreign exchange reserves, and as key players in domestic and international money markets, central banks function as highly complex financial institutions. They are distinguished however by their small size relative to other market actors and their primary focus on public policy rather than profit maximisation. The outcome is that central banks must choose judiciously the technology they need to act in financial markets. How, for instance, can systems and standards developed for commercial financial institutions be adapted?

IT at the ECB, ESCB and Eurosystem
Jim Etherington
Director General, Information Systems Directorate, European Central Bank

The European Central Bank stands at the centre of the eurosystem, the network of national central banks who have adopted the euro as a single currency. However, many critical Eurosystem tasks are still undertaken by the national central banks on a decentralised basis, requiring extensive cooperation. This session examines how the ECB and the national central banks have developed technological solutions to serve and underpin this system, and, more generally, how this kind of network cooperation can function.

Contingency planning and risk management
Roy Laverick
Consultant and former IT audit Manager, Bank of England

As operators of national payment systems, and as key players in financial markets, central banks have long understood the need for contingency planning to ensure that critical systems can continue to operate in all conditions. The attacks on the US in 2001 underlined this responsibility. This session examines some of the key elements of a contingency planning strategy, and examines also the wider issues raised by crisis scenarios, ensuring, for instance, that key personnel are able to access back-up facilities and that plans are sufficiently flexible to adapt to real-world situations.

Reforming central bank IT architecture
Dr Raymond Bloch
Assistant Director, Information Technology Section, Swiss National Bank

Central banks and financial supervisors cannot insulate themselves from technological developments, legacy systems eventually need to be replaced and financial market developments adapted to. However, reform of IT architecture or infrastructure cannot compromise day-to-day efficiency. This session examines how a large European central bank approached the wholesale renewal of the IT infrastructure.

Implementing systems reform – panel and roundtable discussion
Olof Hesselmark and John Mendzela
Mendhurst Associates

Frequently, reform of information systems is just one part of larger restructuring at an organisation. This complicates the purely technical issues, and underscores the extent to which IT issues are often as much managerial as technological. Drawing on the panellists’ experience of managing change at a series of central banks, this session also calls on delegates to contribute and learn from each other’s experiences in this area.

INTERNET and the NETWORKED ENVIROMENT

Security risks, controls and IT audit
Roy Laverick
Consultant and former IT audit manager at the Bank of England

It is critical for central banks and regulatory agencies to take a considered approach to data security. An understanding of the importance of safeguarding information must be disseminated throughout the organisation, and staff must be incentivised to regard this as a critical part of their work, rather than a chore. Audit has a key role to play in ensuring that policies are followed and risks controlled. This session examines how central banks and regulatory authorities should approach this task.

Internet as the public face of the central bank
David Bowen
Bowen Craggs Consulting; Financial Times Internet Correspondent

For central banks, who operate on a global scale, the internet is an invaluable tool providing instantaneous access to an international audience. But many central banks do not fully exploit this new medium. There is still a lack of appreciation for what a website is for, what they can achieve, and how they can best be taken advantage of. The group will discuss how to apply this understanding in practice.

Problem surgery and course conclusion

A chance for delegates to share views and experiences and learn from each other.