Internal Governance Structures
While the Commission has overall responsibility for the management and control of the Central Bank, there are a number of internal committees which have been established to co-ordinate the development and implementation of policies and to advise and inform on major issues.
The Internal Audit function is an independent and objective appraisal function, which is required to provide audit assurance that the system of risk management and internal control is adequate to manage and control those risks to which the Central Bank is exposed. It also assists the Central Bank in its pursuit of efficiency and effectiveness. The Head of Internal Audit reports directly to the Governor and has unrestricted access to the Audit Committee and members of the Senior Management Committee.
The Internal Audit function submits four-monthly written reports to the Governor, the Audit Committee and the Senior Management Committee giving an assessment of how effectively the Central Bank’s objectives are being met. The Internal Audit function also reports to the Internal Audit Committee of the ECB on the outcome of ESCB audits and other audit issues.
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 Governor’s Committee deals primarily with preparation for Commission meetings, senior appointments and other strategic issues. The Committee maintains an oversight role of all organisational activities and provides final sign-off on issues which have been explicitly escalated from other internal Committees of the Central Bank. Chaired by the Governor, it also comprises the two Deputy Governors and the Chief Operations Officer.
- The Senior Leadership Committee co-ordinates the development and implementation of management policies and decisions in the Central Bank. These include planning, budgeting and resource allocation, systems and infrastructure, and risks and controls. Chaired by the Governor, the Committee also comprises of the two Deputy Governors, the Chief Operations Officer, the twelve Directors, and the Advisor to the Governor.
- The Financial Stability Committee assists in the fulfilment of the Central Bank’s mandate to contribute to financial stability in Ireland and the euro area. Members of the Committee monitor and assess domestic and international economic and financial developments, highlight potential areas of concern relevant to the Irish financial system and draw conclusions from the analysis. Chaired by the Governor, the Committee also comprises of the two Deputy Governors, the Advisor to the Governor, and the directors and heads of division from the relevant central banking and financial regulation areas.
Other High-Level Committees
- The Executive Risk Committee oversees the management of the Central Bank’s financial and operational risks. It also has particular focus with regard to investment assets, the risks inherent in implementation of Eurosystem monetary policy, asset and liability management, and operational risk management. Chaired by the Deputy Governor (Central Banking), the Committee also comprises the Director of Financial Operations, the Director of Credit Institutions Supervision, and relevant Heads of Division.
- The Policy Committee was established to advise the Deputy Governor (Financial Regulation) on supervisory and regulatory policy concerning prudential banking, prudential insurance, credit unions, funds, securities and markets, corporate governance, accounting and auditing, consumer protection and enforcement and EU and international policy. Chaired by the Deputy Governor (Financial Regulation), it also comprises the six Regulatory Directors, the Chief Economist and relevant Heads of Division.
- The Supervisory Committee advises the Deputy Governor (Financial Regulation) and relevant supervisory directorates and divisions on issues central to the management of supervisory risks and also on the development and enhancement of risk-based supervision and supervisory engagement. Chaired by the Deputy Governor (Financial Regulation), it also comprises the six Regulatory Directors and the Regulatory Heads of Division.
- The Operations Committee was established as a sub-committee of the Senior Leadership Committee to formulate and deliver the plans that relate to the efficient functioning of the Central Bank. It ensures that the organisation conducts its business and uses all its resources, including technological and human resource capability, in an efficient and cost effective manner. Chaired by the Chief Operations Officer, it also comprises nominated Directors from each pillar (Financial Regulation, Central Banking, Operations) of the Central Bank.
The Governance structure also comprises a number of cross-organisational committees chaired by executive directors which include:
- The Central Bank Investment Committee ensures effective organisation level investment evaluation, prioritisation and oversight of Projects requiring contended enterprise resources (Investment Funds and/or Technology resources). Chaired by the Chief Operations Officer, it comprises nominated Directors from each pillar (Regulation, Central Banking and Operations), and includes subject matter experts from the Project Management Office, the Information Management and Technology Division, the Financial Control Division, and the Procurement Division.
- The Business Continuity Management Steering Committee agrees the strategic direction of the Central Bank’s Business Continuity programme, in line with the Central Bank’s risk appetite, and prioritises Business Continuity initiatives. Chaired by the Chief Operations Officer, it also is comprises relevant Heads of Division.
- The Pensions and Investment Advisory Board advises on investment issues associated with the superannuation scheme of the Central Bank. Chaired by the Director of Financial Operations, it also comprises of relevant Heads and Deputy Heads of Division, and other subject matter experts.