ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

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The Deputy Governor The Deputy Governor supports the Governor in his duties, and exercises the powers, duties and responsibilities of the office during the absence or disability of the Governor. Executive Committee The Executive Committee, which comprises the Governor and Deputy Governor, has the overall responsibility for the internal controls and risk management of the Bank. The Committee continues to guide the system of internal control and ensures that the Bank’s policies are carried out by the various departments, each of which is headed by a senior director or a director. During the year, the Bank completed its “Guidelines for the Succession of Governor and Deputy Governor.” The Monetary Council approved the guidelines at its March 2017 meeting. RISK MANAGEMENT AND INTERNAL CONTROL As part of the transformation of the audit function, the recently formed Office of Risk Management, which is headed by the Chief Risk Officer (CRO), is charged with the responsibility of developing, implementing and maintaining an Enterprise Risk Management Framework for the Bank in accordance with international standards. The CRO reports directly to the Governor on matters related to risks. In keeping with current leading practices and based on the recommendation from the report of the IMF Safeguards Assessment, in January 2017 the Board Audit Committee was renamed the Board Audit and Risk Committee. The Board Audit and Risk Committee continues to provide guidance to the Board of

Directors in fulfilling its oversight responsibilities for the financial reporting process, the system of internal control, risk management and monitoring compliance with laws and regulations and the code of conduct. Specific to the work of the Committee, consultations are conducted with the Bank’s directors and officers, and with the internal and external auditors as deemed necessary. External Auditors An external auditor is appointed by the Board of Directors from a list of auditors approved by the Monetary Council. The selection is done through a process of tendering and due diligence review. The auditor selected serves for a period of three years. The external auditor conducts an annual audit to provide the assurance that the financial statements fairly represent the Bank’s financial position, and reports to the Board Audit and Risk Committee on its findings and recommendations.

The auditing firm of KPMG was appointed on 1 April 2013 to serve as the external auditor for the Bank.

INTEGRITY AND FINANCIAL REPORTING Disclosure and Transparency

In keeping with international standards, the Bank publishes statements of assets and liabilities monthly and audited financial statements by the end of June each year in accordance with statutory requirements. Transparency practices are published on the Bank’s website.