Introduction
The growing reliance on digital payments and increasingly interconnected Financial Market Infrastructures (FMIs) has significantly heightened the potential for systemic risk within the financial system. Disruptions in payment systems, central counterparties, or settlement platforms can rapidly propagate across institutions and markets, threatening financial stability at both national and cross-border levels.
The Managing Systemic Risk in Digital Payments and Financial Market Infrastructures course is designed for regulators and supervisors responsible for safeguarding financial stability. This intensive five-day program equips participants with the analytical frameworks, supervisory tools, and crisis management techniques required to identify, monitor, and mitigate systemic risks arising from digital payments and FMIs.
The course integrates international standards, stress-testing methodologies, and real-world crisis case studies, enabling participants to manage complex interdependencies within modern financial systems.
Course Objectives
By the end of this course, participants will be able to:
- Understand the sources and transmission channels of systemic risk in digital payment systems and Financial Market Infrastructures.
- Apply international standards for the supervision of systemically important financial infrastructures.
- Identify interconnectedness, concentration, and contagion risks within payment ecosystems.
- Conduct stress testing and scenario analysis for payment systems and FMIs.
- Strengthen supervisory responses to operational, cyber, and liquidity shocks.
- Develop crisis management, recovery, and resolution strategies for systemically important infrastructures.
- Enhance coordination among domestic and cross-border supervisory authorities.
Course Outlines
The course is delivered over five structured training days, with each day addressing a critical aspect of systemic risk and financial stability oversight.
Day 1: Systemic Risk Concepts and Financial Market Infrastructures
- Definition and key drivers of systemic risk.
- Overview of digital payment systems and financial market infrastructures.
- Systemically important payment systems and infrastructures.
- Interconnectedness and contagion channels across institutions and markets.
- Supervisory roles in financial stability oversight.
Day 2: Regulatory Standards and Oversight Frameworks
- CPMI-IOSCO Principles for Financial Market Infrastructures.
- Designation and supervision of systemically important infrastructures.
- Macroprudential supervision and systemic risk monitoring.
- Data collection and risk indicators for systemic oversight.
- Cross-sector and cross-border regulatory coordination.
Day 3: Stress Testing and Scenario Analysis
- Designing stress tests for payment systems and financial market infrastructures.
- Liquidity, operational, and cyber stress scenarios.
- Reverse stress testing and tail-risk assessment.
- Use of supervisory analytics and data-driven tools.
- Interpreting stress test results for policy and supervisory action.
Day 4: Crisis Management and Operational Resilience
- Managing major disruptions in payment systems and infrastructures.
- Business continuity management and recovery frameworks.
- Cyber incidents and systemic cyber risk management.
- Communication strategies during financial crises.
- Lessons learned from global payment system and FMI disruptions.
Day 5: Recovery, Resolution, and Future Challenges
- Recovery and resolution planning for financial market infrastructures.
- Role of central banks and supervisors in resolution processes.
- Managing risks arising from innovation and digitalization.
- Future challenges, including real-time payments, digital currencies, and fintech developments.
- Case studies, simulations, and supervisory best practices.
Why Attend This Course? Wins & Losses!
- Strengthen financial stability oversight capabilities.
- Gain practical tools to identify and mitigate systemic risks.
- Enhance crisis preparedness and response strategies.
- Align supervisory practices with global regulatory standards.
- Improve coordination across supervisory and regulatory bodies.
Conclusion
The Managing Systemic Risk in Digital Payments and Financial Market Infrastructures course provides a comprehensive and structured approach to understanding and mitigating systemic risks in an increasingly digital and interconnected financial system. By combining regulatory frameworks, analytical tools, and real-world crisis case studies, the program empowers supervisors to proactively safeguard financial stability.
This course is essential for regulators, central bank professionals, and financial stability authorities responsible for overseeing critical payment systems and Financial Market Infrastructures.
