ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

relevant authorities. The specific objectives were as follows: ; Assess the Payment System Development and Oversight Unit’s (PSDOU) compliance with the relevant industry standards and frameworks; ; Ascertain the progress made towards the implementation of the payments system strategy, vision and work programme, and whether the work programme was in line with the strategic objectives and best practices; and ; Determine the adequacy of the structure, staffing and other resources to accomplish the function’s objectives. One major audit geared at increasing the Bank’s operating effectiveness in Crisis Management was conducted. Crisis management involves strategic planning and responses to unexpected events and threats and assists in preventing, mitigating and responding to various crises. In the increasingly volatile business environment, the Bank must not only prepare for, but accept crises. Since the COVID-19 pandemic, there has been an increased need for organisations to become more resilient in the management of crises. The purpose of the audit was to compare the Bank’s Crisis Management Structure with the International Organisation for Standardisation (ISO) 22361:2022 to determine compliance with the international best practices. The results will be discussed with all stakeholders in the upcoming period. C ompliance The Bank approved its Compliance Management System (CMS) Framework Policy during the final quarter of the 2022-2023 financial year. COMPLIANCE AND RISK MANAGEMENT

The Framework Policy states that the Bank and its management are committed to conducting its business activities in accordance with all applicable laws, regulations, policies and ethical standards. This seeks to ensure individual accountability in a manner that will enhance the Bank’s achievement of its strategic goals. The main objectives of the CMS are to establish the procedures required for effective compliance with the laws, regulations, internal policies, and international standards of best practices which govern/guide the operations of the Bank; and minimise any risks and negative impacts associated with non-compliance. The implementation of the compliance management system has commenced and is expected to be completed over this strategic period. R isk M anagement The Bank has commenced preparations for the implementation of the Key Risk Indicator (KRI) Framework to aid in greater clarity in the risk management process. The KRI framework is an output of the Bank’s Risk Management Framework. It is geared at further enhancing the risk management function across the Bank and it is expected to be fully implemented by the second quarter of the upcoming financial year. Additionally, the Bank has developed an Operational Risk Incident Reporting Framework, which will allow all staff to anonymously report on any event which had, or could have had (near-miss), a negative financial, business or reputational impact on the ECCB. The Bank also prepared, approved and implemented Recruitment and Selection Policy and Procedures guidelines, as well as Internship

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