ECCB 2025-2026 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2025 - 2026

Organisational Effectiveness and Development

Implementation and Monitoring of its Key Risk Indicators (KRIs) The Bank finalised the implementation of its KRI framework. The implementation of effective KRIs across the Bank is expected to improve risk oversight and strengthen the ECCB’s risk management framework by cascading and articulating its risk appetite, proactively adjusting strategies in advance of/or in response to risk events and facilitating relevant and timely information for decision making. The implementation of the Key Risk Indicator (KRI) framework will continue to support the risk management function by providing key risk indicators for the identification and interception of high-risk events before they materialise and escalate further – which will signal any changes in operational risk exposure. During the year, KRIs were incorporated in risk management reporting for effectiveness in monitoring and management of risks across the Bank. Acquisition and implementation of a Governance Risk and Compliance (GRC) Solution The Bank procured and commenced i mplementation of a GRC Solution. Implementation is expected to be completed by the end of first quarter 2026-2027 financial year. The implementation of a GRC Solution is part of the Bank’s ongoing mandate to modernise enterprise wide processes and functions. Transitioning to a dedicated GRC platform will streamline the risk management, compliance tracking, policy management and governance functions of Bank into an integrated system that centralises relevant information, enhances reporting capabilities and improves general efficiency.

Additionally, these two prudential standards will be formally gazetted across all member countries, ensuring that their requirements now carry the full force of law. This formalisation provides the essential technical infrastructure to support the mandates of the Banking Act, 2015 and the Banking (Amendment) Bill 2024. Risk Management The Bank engaged in several key risk management activities which improved the Bank Enterprise Risk Management practices. These activities propelled the Bank’s risk maturity from an established risk maturity level to the advanced risk maturity level by the International Operational Risk Working Group (IORWG) in September 2025. In addition, the Bank has seen steady and significant reduction in operational risks across the Bank, maintaining a moderate residual risk posture trend. A number of key activities were undertaken during the year. Comprehensive Assessment of Risk Appetite Statement (RAS) The Bank performed a comprehensive assessment of its Risk Appetite Statement (RAS) and tolerances to ensure that they remain relevant to manage the risks faced in fulfilling its strategic objectives, meeting regulatory requirements and meeting stakeholder expectations. The risk appetite statement guides the Bank’s internal compliance processes and strategic decision-making. It informs all relevant parties of its expectations regarding how the Bank approaches risk on a daily basis and how these fulfil its risk strategy.

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