Internal Governance

Internal Governance Structures

The Central Bank Commission has overall responsibility for the management and control of the Central Bank. A number of internal committees further co-ordinate the development and implementation of policies and to advise and inform on major issues.

• High-Level Committees Chaired by the Governor
• Other High-Level Committees

Our Governance Framework

The Central Bank’s Governance Framework consolidates and summarises our organisational structures, governance and decision making processes. Supporting this is the Responsibilities of Senior Leaders at the Central Bank of Ireland document, which describes the responsibilities of the members of the Central Bank’s senior leadership team.

Internal Audit

Internal Audit is an independent, objective assurance and consulting function designed to add value and improve the performance of the Central Bank in delivering upon its strategic responsibilities. It systematically evaluates the effectiveness of risk management, control and governance processes. Internal Audit is a member of the Internal Auditors Committee (IAC) of the ECB and is responsible for auditing the local components of ESCB systems and processes. The IAC is the internal audit function for the Eurosystem and European System of Central Banks. Internal Audit is a third line of defence function.

The Head of Internal Audit reports directly to the Governor and has unrestricted access to the Audit Committee and the members of the Senior Team. Internal Audit is responsible for reporting significant risk exposures and control issues to the Commission and Senior Management.

Internal Audit’s purpose, authority, responsibility and position within the Central Bank is outlined in the Central Bank Internal Audit Charter.  A link is also provided to the Audit Charter for the ESCB and Single Supervisory Mechanism.

Risk Management

Risk management and robust internal control are an integral part of the Central Bank's governance and management systems. Risk management comprises the identification and assessment of risks, the implementation of control measures, the review and monitoring of controls and regular reporting to senior management and the Commission on the effectiveness of control measures. The Central Bank's risk management frameworks seek to safeguard the security, continuity, compliance and integrity of operations in support of the Central Bank's strategy and business objectives. The accountabilities of management and staff in respect of the Central Bank's risk management frameworks are set out in a range of policies, which are reviewed and approved by the Commission or its sub-Committees.

Risk Appetite

The Central Bank Commission has defined an overarching risk appetite. The risk appetite and underlying limits and tolerances are an important part of the Central Bank's internal governance. The risk appetite supports the Central Bank's risk management approach, which includes measures for identifying and assessing financial and non-financial risks, implementing and monitoring the adequacy of control measures, managing incidents and breaches, and reporting the status of risks, control and remedial actions. Assessing the Central Bank's actual risk profile against its risk appetite permits the Commission to determine the adequacy of these risk management activities. An abridged version of the risk appetite is provided below.

High-Level Committees Chaired by the Governor

• The Executive Leadership Committee acts as the key executive decision making that have strategic, Central Bank-wide or external significance. The Committee’s role is to advise, assist and support the Governor in fulfilling their responsibilities, including those functions delegated by the Commission to the Governor. For the purpose of this Committee the Governor is identified as the key decision maker.
• The Financial Stability Committee advises on the Central Bank’s financial stability policies, including the Central Bank’s macroprudential policy measures.

Other High-Level Committees

• The Economic Policy and Research Committee (chaired by the Deputy Governor, Monetary and Financial Stability) advises on the Central Bank’s role in informing economic and related policy making at domestic and European levels and to oversee the Bank’s policy research programme.
• The Performance and Resourcing Committee (chaired by the Chief Operations Officer) drives the Central Bank’s strategic performance and supports the effective use of resources. The responsibilities of the Committee are to oversee preparation of the Annual Business Plan and investment envelopes; oversee, monitor and support the effective delivery of the Annual Business Plan; decide on the allocation of resources, across the Central Bank to deliver the Annual Business Plan, reflecting annual and ad hoc prioritisation processes; oversee preparation and monitoring of the Central Bank’s annual budget, including the investment envelope in line with agreed thresholds, and monitoring of the financial accounts; and oversee the development, and approval of relevant policies under the Central Bank’s Corporate Policy Framework.
• The Regulatory Policy Committee (chaired by the Deputy Governor, Consumer and Investor Protection) advises on regulatory policy issues and initiatives including consultation papers, feedback statements, codes, guidelines, and regulations before their adoption in accordance with relevant delegations.
• The Risk Management Committee (chaired by the Deputy Governor, Monetary and Financial Stability) oversees the design, maintenance and continuous development of effective frameworks for the management of the Central Bank's principal internal risk exposures. A key objective is to ensure risks are managed within the Commission’s approved risk appetite and associated tolerances. The committee also reviews relevant risk items before they are submitted to the Commission’s Risk Committee. 
• The Supervisory Risk Committee (chaired by the Deputy Governor, Financial Regulation) advises on issues central to the management of supervisory risks and also, on the development and enhancement of risk-based supervision and supervisory engagement.