Sound risk management key to innovation

Release date
24 June 2014

Smart risk management provides an environment for considered risk taking and innovation, the Reserve Bank's Deputy Governor Geoff Bascand said in a speech today.

Mr Bascand, and the Bank's Head of Risk Assessment and Assurance, Steve Gordon, jointly delivered the speech to a New Zealand Institute of Chartered Accountants' workshop in Wellington today.

In the speech, Mr Bascand shares some of the risk management insights he has gleaned from executive management roles at both Statistics New Zealand, and now the Reserve Bank of New Zealand.

"Engagement and conversations are vital. Risks need to be talked about. This builds awareness and action. Developing a culture in which risks can be discussed, managed and accepted is a key leadership challenge," Mr Bascand said.

Steve Gordon said it is important to openly acknowledge risk and recognise that an effective enterprise risk management capability is an integral part of running a successful business.

The Reserve Bank recently introduced a new Enterprise Risk Management (ERM) model, which was developed in-house to fit the organisation's culture and values, as well as its many policy and operational functions. In the Bank's case, key risks are associated with financial market operations, currency (cash management) operations, and the operation of the payments systems infrastructure.

Mr Bascand said risk management is a whole-of-organisation responsibility. "Done well, it fosters both adaptability and resilience, two crucial aspects of organisational performance."

Media Contact:
Naomi Mitchell, External Communications Adviser
Ph 04 471 3960, 027 485 9474, [email protected]