Executive Accountability Framework October 2024

Overview

Executives at the Reserve Bank of Australia (the Bank) are held to high standards of accountability. Clear accountability is the foundation for the Bank to promote good governance and a strong culture

in pursuit of its objectives. In support of this, the Executive Accountability Framework (EAF) outlines where accountability lies within the executive team for the Bank’s functions and operations. These Executives are accountable for the decisions, actions and outcomes in these areas. The Bank’s Executive Structure is outlined on the Bank’s website, and the accountabilities of Executives are summarised in Table 1.

The accountabilities are set out in more detail in the Bank’s broader governance framework, including the following legislation and documents:

1. the Reserve Bank Act 1959 (Reserve Bank Act), the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and other relevant legislation
2. the key Bank policies that set the framework for decision-making across the areas of governance, risk, work safety, staff conduct and the use of Bank resources
3. the charters of the Bank’s boards and committees that are responsible for strategy, management and compliance.

The EAF is part of the Bank’s wider framework for governance and transparency. This includes the publication of statements following meetings of the Reserve Bank Board (Board) and the Payments

System Board (PSB), appearances before Parliamentary committees, the publication of the annual report and corporate plan, and the Bank’s regular communication and community engagement.

The key elements of the Bank’s EAF are:

1. the Bank-wide accountabilities of Executives and
2. the accountabilities of Executives within their functional area.

The responsibilities of the Bank’s boards and committees are also set out in this document. The governance structure of these boards and committees is presented in Figure 1.

Bank-wide accountabilities of Executives

Governor

Management of the Bank: The Governor manages the Bank under the Reserve Bank Act and is the Chair of the Bank’s Executive Committee (Exco).

Governance and reporting: The Governor is the ‘Accountable Authority’ of the Bank under the PGPA Act. The Governor is accountable for fulfilling the Bank’s governance and reporting obligations, including through the publication of the annual report and corporate plan and ensuring arrangements are in place for the disclosure of material personal interests. The Governor is accountable to the Australian Parliament, including through regular appearances before Parliamentary committees.

Strategy: The Governor, together with the Deputy Governor and Chief Operating Officer, is accountable for setting the Bank’s strategic direction. The Governor approves the Bank’s Corporate Plan.

Communications: The Governor is the Bank’s chief spokesperson. The Reserve Bank Board and Payments System Board have agreed that the Governor (and where appropriate the Deputy Governor) is the spokesperson for the Board on monetary, financial system stability and payments policy matters respectively. Arrangements for media engagement by Bank staff more broadly are set out in the Media and Social Media Policy.

Fraud and Corruption control: The Governor is accountable for taking all reasonable measures to prevent, detect and deal with fraud and corruption, in accordance with the PGPA Act.

The Bank’s culture: The Governor, together with the Deputy Governor and Chief Operating Officer, is accountable for setting a clear ‘tone from the top’ as a strong foundation for the Bank’s culture.

Monetary and financial policies: The Governor is accountable for implementing the governance and monetary policy framework set out in the Statement on the Conduct of Monetary Policy. The Governor is accountable for discharging the obligation of the Board to inform the Government of its monetary policy from time to time, including through regular discussions with the Treasurer.

Investigate reports of wrongdoing: The Governor is accountable for ensuring the integrity, independence and effectiveness of the Bank’s policies and procedures on whistleblowing and that staff who raise concerns are protected from detrimental treatment as set out in the Reporting Wrongdoing Policy. The Governor is the ‘Principal Officer’ and an ‘Authorised Officer’ for the purposes of the Public Interest Disclosure Act 2013.

Freedom of Information: The Governor is accountable for fulfilling the Bank’s obligations under the Freedom of Information Act 1982 as the ‘Principal Officer’ of the Bank.

Regulatory cooperation: As Chair of the Council of Financial Regulators (CFR), the Governor is accountable for the Bank cooperating with APRA, ASIC and the Australian Treasury, as set out in the CFR’s Charter.

Crisis management: The Governor is accountable for crisis management at the Bank as Chair of the Crisis Management Group under the Incident Management Framework.

Inclusion, diversity and belonging: The Governor, together with the Deputy Governor and COO, is accountable for creating a workplace which enables inclusion, diversity and belonging, consistent with the Inclusion, Diversity and Belonging Statement of Commitment.

Deputy Governor

Management of the Bank: The DG shall perform such duties (including those mentioned below) as are directed or delegated by the Governor and would, in the event of a vacancy in the office of Governor, perform the duties of Governor.

The Bank’s culture: The DG, together with the Governor and Chief Operating Officer, is accountable for setting a clear ‘tone from the top’ as a strong foundation for the Bank’s culture.

Monetary and financial policies: The DG assists the Governor to implement the governance and monetary policy framework set out in the Statement on the Conduct of Monetary Policy.

Risk management: The DG is accountable for risk management at the Bank as Chair of the Risk Management Committee (RMC), including oversight of the Bank’s three lines of accountability model, consistent with the Risk Management Policy and the Risk Appetite Statement.

Investigate reports of wrongdoing: The DG is accountable for ensuring the integrity, independence and effectiveness of the Bank’s policies and procedures on whistleblowing and that staff that raise concerns are protected from detrimental treatment as set out in the Reporting Wrongdoing Policy. Each of the Governor, DG and Chief Risk Officer is an ‘Authorised Officer’ for the purposes of the Public Interest Disclosure Act.

Strategy: The DG shares accountability for setting the Bank’s strategic direction with the Governor and Chief Operating Officer.

Inclusion, diversity and belonging: The DG, together with the Governor and Chief Operating Officer, is accountable for creating a workplace which enables inclusion, diversity and belonging, consistent with the Inclusion, Diversity and Belonging Statement of Commitment.

Chief Operating Officer

Management of the Bank: The COO shall perform such duties (including those mentioned below) as are directed or delegated by the Governor.

The Bank’s culture: The COO, together with the Governor and DG, is accountable for setting a clear ‘tone from the top’ as a strong foundation for the Bank’s culture.

Investment expenditure: The COO is accountable for the Bank’s investment expenditure decisions as Chair of the Investment Committee, by ensuring that investments are aligned to the Bank’s strategic plan, deliver value for money and that the associated benefits are realised, including by holding project steering committees accountable for delivery.

Technology services: The COO is accountable for ensuring the Bank’s technology services meet the needs of the Bank, including as Chair of the Technology Committee.

Crisis management: The COO is accountable for incident response and recovery at the Bank as Chair of the Incident Assessment Team and Facilitator of the Crisis Management Group under the Incident Management Framework.

Business continuity: The COO is accountable for executive oversight of the effective and consistent adherence to the Incident Management Framework and coordination of Bank-wide operational resilience testing, in line with Risk Appetite.

Strategy: The COO shares accountability for setting the Bank’s strategic direction with the Governor and Deputy Governor. In addition, the COO is accountable for coordinating the activities that support the formulation of those strategic priorities and reporting progress against them; and for overseeing the Bank’s Enterprise Strategy & Change Department.

Inclusion, diversity and belonging: The COO, together with the Governor and DG, is accountable for creating a workplace which enables inclusion, diversity and belonging, consistent with the Inclusion, Diversity and Belonging Statement of Commitment.

Assistant Governor (Business Services)

Banking services: The AG(BS) is accountable for providing banking services to Australian Government departments and agencies, including the management of the Government’s core accounts and transactional banking.

Australian banknotes: The AG(BS) is accountable for the design, issue, reissue and cancellation of Australian banknotes to maintain the capacity of Australian banknotes to provide a safe, secure and reliable means of payment and store of value.

Payments settlements: The AG(BS) is accountable for the operation of the Reserve Bank Information and Transfer System, to support the settlement of payments and interbank obligations arising from the conduct of Exchange Settlement Accounts and the Bank’s own trading activities.

Anti-money laundering/counter-terrorism financing (AML/CTF): The AG(BS) is accountable for the Bank’s compliance with its AML/CTF obligations, consistent with the AML/CTF Policy.

Assistant Governor (Economic)

Advice on the economy and monetary policies: The AG(EC) is accountable as principal adviser to the Governor, Deputy Governor and the Board on monetary policies and the working of the Australian macro-economy.

Assistant Governor (Financial Markets)

Advice on financial markets: The AG(FM) is accountable as a principal adviser to the Governor, Deputy Governor and the Board on monetary policies and on financial market developments and markets-related policy.

Management of the financial portfolios: The AG(FM) is accountable for the management of the Bank’s financial portfolios, including foreign currency and gold reserves, central bank foreign exchange swaps, domestic market operations, and the Bank’s domestic portfolio, under a delegation from the Governor in the Financial Risk Management Governance Policy.

Financial risk management: The AG(FM) is accountable for the effective application of the Bank’s financial risk management, consistent with the Financial Risk Management Governance Policy. The AG(FM) is to ensure that the Bank’s financial risk exposure guidelines remain appropriate, and to monitor compliance with those guidelines.

Assistant Governor (Financial System)

Advice on financial stability: The AG(FI) is accountable for advising the Governor, Deputy Governor and the Board on financial stability.

Regulatory cooperation: The AG(FI) is accountable for the Bank cooperating with APRA, ASIC and the Australian Treasury, as a Bank representative on the CFR, as set out in the CFR’s Charter.

Chief Risk Officer

Risk Management Strategy: The CRO is accountable for the design and successful execution of the Bank’s risk and compliance management strategy, ensuring effective oversight and challenge. The CRO ensures that risk tolerances and metrics are set and monitored to evaluate risk relative to the risk appetite.

Risk Management Frameworks and Policies: The CRO is accountable for the development, oversight and compliance monitoring of all risk and compliance management frameworks in respect of financial and non-financial risk, including in relation to operational risk, business continuity and third party risk, cyber risk, fraud and corruption control, AML/CTF, sanctions and privacy risk. In relation to financial risk management, the CRO ensures that the Bank’s financial risk exposure guidelines remain appropriate and independently monitors compliance with those guidelines. The CRO also reviews and challenges the risk management capability and capacity of the Bank’s staff.

Risk Appetite Statement: The CRO is accountable for the development of the Risk Appetite Statement and supporting tolerances, for implementing effective frameworks and processes to evaluate risk in the Bank relative to the Risk Appetite Statement and for supporting the Bank in developing appropriate risk mitigations.

Risk culture: The CRO is accountable for defining, embedding and measuring the Bank’s risk culture, including how staff identify, understand, discuss and act on risks (jointly with the Chief People Officer).

Conflicts of interest: The CRO is accountable for maintaining, on behalf of the Governor, instructions to staff for the disclosure of material personal interests, consistent with the Code of Conduct for Reserve Bank Staff and PGPA Act and as set out in the Disclosure of Material Personal Interests Instructions.

Investigate reports of wrongdoing: The CRO is accountable for the proper handling of disclosures as an ‘Authorised Officer’ for the purposes of the Public Interest Disclosure Act for the Reporting Wrongdoing Policy.

Business continuity: The CRO is accountable for providing oversight of the Bank’s arrangements for business continuity management and business resilience, consistent with the Risk Appetite Statement, the Incident Management Framework and Operational Resilience Guideline.

Head of Audit Department

Internal audit and reporting: The Head of AD is accountable for undertaking a risk-based audit program and implementing the Audit Department Charter. The Head of AD is accountable for providing independent and objective assurance to the Board Audit Committee and senior management on the Bank’s activities.

Chief Financial Officer

Financial reporting: The CFO is accountable for the production and integrity of the Bank’s financial information and its regulatory reporting, including in support of the Bank’s Corporate Plan.

Expenditure and payment approval: The CFO is accountable for expenditure and payment approval at the Bank, consistent with the Expenditure and Payment Approval Policy.

Procurement: The CFO is accountable for the framework supporting procurement and disposal of tangible assets, consistent with the Procurement and Disposal Policy.

Third party risk: The CFO is accountable for the framework supporting effective contract and performance management of external suppliers, in line with the Procurement and Disposal Policy.

Chief Communications Officer

Communications: The CCO is accountable for providing strategic advice to the Governor and the Bank on external and internal Bank-wide communications programs and executing on those programs, in order to build and maintain public trust in the Bank. The CCO is also accountable for directing the Bank’s efforts to promote economics education in Australia.

Chief People Officer

People management: The CPO is accountable for talent acquisition, remuneration, and employment terms and conditions, consistent with the Position Management Policy, the Leave Management Policy and the RBA Enterprise Agreement 2023.

The Bank’s culture: The CPO is accountable for frameworks to define, measure and embed a culture in line with the Bank’s values, as set out in the Code of Conduct (and shared with CRO in relation to risk culture).

Work health and safety: The CPO is accountable for managing work health and safety at the Bank, consistent with the Work Health and Safety Policy.

Protective security of people: The CPO is accountable for personnel security, including employee screening and conduct, consistent with the Protective Security Framework.

Workplace behaviour: The CPO is accountable for managing workplace behaviour at the Bank, consistent with the Code of Conduct for Reserve Bank Staff and the Workplace Behaviour Policy.

Head of Knowledge Management Department

Information management: The Head of KM is accountable for information management at the Bank, the Information Management Policy, Information Classification Policy and associated Information Governance Framework.

Data management: The Head of KM is accountable for data management at the Bank, the associated Data Management Policy and associated Data Management Framework.

Protective security of information assets: The Head of KM is accountable for the framework in support of the protective security of information assets stored in the Bank’s knowledge, information and data management systems, and selected shared output from business systems, consistent with the Protective Security Framework.

Head of Workplace Department

Maintaining Bank facilities: The Head of WP is accountable for property management, building works, infrastructure maintenance and repairs, fire and emergency control, and various facility services, consistent with the Work Health and Safety Policy.

Crisis management testing and emergency control: The Head of WP is accountable for crisis preparations, testing and emergency control at the Bank, and ensuring that the Bank’s physical assets are secure and resilient, and appropriately maintained consistent with the Incident Management Framework and the Operational Resilience Guideline.

Protective security of physical premises: The Head of WP is accountable for the security of the Bank’s physical premises, consistent with the Protective Security Framework and the Physical Security Policy for RBA Premises.

Chief Information Officer

Technology services: The CIO is accountable for providing technology services to support the Bank’s current policy, operations and corporate functions and its future strategic direction and ensuring that the Bank’s technology assets are secure and resilient, and appropriately maintained consistent with the Bank’s Incident Management Framework and the Operational Resilience Guideline.

Protective security of technology assets: The CIO is accountable for the security of information stored in the Bank’s technology systems, including risks arising from cyber-threats, consistent with the Protective Security Framework and the Information Systems Security and Acceptable Use Policy.

Accountabilities of Executives within their functional area

Strategy: All executives are accountable for supporting implementation of the Bank’s strategic priorities within their functional areas.

Investment expenditure: All Executives are accountable the delivery of material projects, including that benefits are realised and costs are managed, including through their role as business sponsors and members of relevant Steering Committees under the oversight of the Investment Committee.

Expenditure and payment approval: All Executives are accountable for expenditure and payment approval in their functional area, consistent with the Expenditure and Payment Approval Policy.

People management: All Executives are accountable for overseeing the selection, appointment and performance management of staff within their functional area, and for engaging in succession planning for critical roles at the Bank.

The Bank’s culture: All Executives are accountable for creating a culture in their functional area aligned with the Bank’s values and consistent with the Code of Conduct for Reserve Bank Staff, including a culture around risk-taking aligned with the Bank’s Risk Appetite Statement. Executives are to ensure that staffing, training and morale are maintained at a level that allows their functional area to efficiently achieve its objectives.

Work health and safety: All Executives must exhibit safety leadership and demonstrate a commitment to health and safety matters at the Bank, and apply the Bank’s work health and safety procedures effectively in their functional area, consistent with the Work Health and Safety Policy.

Workplace behaviour: All Executives are accountable for managing workplace behaviour in their functional area, consistent with the Code of Conduct for Reserve Bank Staff and the Workplace Behaviour Policy.

Conflicts of interest: All Department Heads are accountable for supporting compliance with the Bank’s instructions for the disclosure of material personal interests in their functional area, consistent with the Code of Conduct for Reserve Bank Staff and the Disclosure of Material Personal Interests Instructions.

Inclusion, diversity and belonging: All Executives are accountable for ensuring that equity, diversity and inclusion principals are adhered to in their functional area, consistent with the Inclusion, Diversity and Belonging Statement of Commitment.

Risk management and compliance: All executives are accountable for managing risks in their functional area, consistent with the Risk Management Policy and the Risk Appetite Statement. All executives are accountable for ensuring they identify, monitor and operate in accordance with legal obligations relevant to their functional area, including seeking advice as necessary.

Operational resilience: All Executives are accountable for managing business continuity and the operational resilience of their functional area, in collaboration with key support departments, consistent with the Risk Appetite Statement, the Incident Management Framework and Operational Resilience Guideline.

Third party risk and procurement: All Executives are accountable for ensuring that their functional area complies with the Bank’s procurement processes and for entering into contracts that adequately protect the interests of the Bank and contain appropriate risk allocation. Executives are accountable for the effective management of those contracts, including procurement contracts, in accordance with Bank policies and guidelines and managing the performance of external suppliers, consistent with the Procurement and Disposal Policy, in their functional area.

Fraud and corruption control: All Executives are accountable for fraud and corruption control in their functional area, consistent with the Fraud and Corruption Control Policy.

Anti-money laundering/counter-terrorism financing (AML/CTF): All Executives are accountable for the implementation of the Bank’s AML/CTF Policy in their functional area. This applies in particular for departments that provide ‘designated services’, which include Banking Department, Payments Settlements Department and International Department.

Sanctions: All Executives are accountable for the implementation of the Bank’s Sanctions Policy in their functional area. This applies in particular for departments involved in supplier screening, payments and other transactions, which include Banking Department, Payments Settlements Department and Finance Department.

Privacy: All Executives are accountable for compliance with the Bank’s privacy obligations in their functional area, consistent with the Privacy Guidelines.

Data governance: All Executives must ensure that they and their functional areas support data management best practices in accordance with the Data Management Framework.

The Bank’s Boards and Committees

Reserve Bank Board

Payments System Board

Reserve Bank Board Audit Committee

Reserve Bank Board Remuneration Committee

Note Printing Australia Limited Board

NPAL Board Audit and Risk Committee

Executive Committee

Investment Committee

Technology Committee

Inclusion, Diversity and Belonging Council

Financial Market Infrastructure Review Committee

Risk Management Committee (and Information Governance Committee)

Incident Assessment Team (IAT)

Crisis Management Group (CMG)

Talent Management Committee (TMC)

Employee Remuneration Committee (REMCO)

Accountabilities of Executives at the Bank