The Reserve Bank of Australia needs to better integrate technology skills at the board level, the government’s review into the institution found.
The review [pdf] states that current governance arrangements concentrate power with the governor and deputy, and that the Reserve Bank board “play a very limited oversight role outside of monetary policy”.
The review noted “technology and related cyber risks are increasingly important in the RBA’s operations,” adding that IT staff had doubled in the past decade “to around 420 staff members.
“Around 30 percent of RBA staff are now employed in IT, up from around 20 percent in 2012," the review said.
The review proposes creating three boards handling the RBA’s different activities: a governance board to oversee the day-to-day operation of the organisation; a monetary policy board; and a payments system board.
The review noted that “the RBA senior executive group is relatively homogeneous in terms of experience and knowledge”, something it hopes to remedy with the proposed governance board.
“The governance board’s responsibilities should include oversight of organisational strategy, financial reporting, large IT and other projects, resourcing, strategic staff planning, risk management (including cyber risk) and delivery of banking and banknote services”, the review stated.
“The governance board can provide further expertise, in an oversight capacity, in areas such as technology, human resourcing, and risk and financial reporting, helping to ensure robust organisational performance and importing best practices from other organisations.”
One member of the governance board, the review said, should be a newly-appointed chief operating officer, appointed at the same level as the current deputy governor, and whose responsibilities would include leading “all corporate and enabling functions”.
The report also revealed concern among staff about its siloed operations, including in technology functions.
“In focus groups with RBA staff members, those in enterprise-wide roles such as risk, human resources and IT were much more likely to be concerned about siloes across the organisation, possibly reflecting that their jobs often involved implementing RBA-wide initiatives”, the review said.
