Risk Management Takes Center Stage at Solomon Islands’ Financial Institutions

In August and September 2021, a team from the Monetary and Capital Markets Department provided technical assistance on central bank risk management in response to a request from the Central Bank of Solomon Islands (CBSI).

Mission Objectives

The primary objective of the mission was to guide the CBSI in establishing an Enterprise Risk Management (ERM) framework that would strengthen its risk culture throughout the organization. The team also focused on enhancing risk governance, including the role of the CBSI’s risk management unit.

Expertise and Supervision

The technical assistance team consisted of experts Paul Woods from the Central Bank of Ireland and Chris Aylmer from the Reserve Bank of Australia, supervised by Ashraf Khan from the MCM’s Central Bank Operations Division.

Benefits for Solomon Islands’ Financial Institutions

The technical assistance aimed to support the Solomon Islands’ financial institutions in effectively managing risks and maintaining stability in the country’s financial system. With this initiative, the CBSI can now better position itself to:

• Mitigate potential threats
• Ensure the continued growth and development of the economy
• Strengthen its risk culture throughout the organization
• Enhance risk governance, including the role of the risk management unit

By implementing an ERM framework, the CBSI will be well-equipped to manage risks effectively, ensuring the stability and resilience of the financial system in Solomon Islands.