Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

129 widespread use of IT and the more liberal approach to exchange controls. They were all efforts to help the Bank remain relevant in a rapidly changing environment. BETTER RISK MANAGEMENT Risk management is an important component of the Bank’s management strategy. The Bank, after all, is the Government’s banker, the guardian of the foreign reserves, the issuer of the Barbadian currency, a large employer and the occupant of the tallest building in Barbados. Each of these responsibilities brings with it some level of risk. The risk management strategy depends on several drivers - internal auditing, business continuity planning, information security, records management, banknote security, vault security and general security. Internal audit Internal auditing functions had existed at the Bank since its formative years and were exercised by a unit in the Bank Supervision Department. The establishment of an Internal Audit Department in 1995 was therefore the consolidation and amplification of this crucial self-regulatory activity. Moreover, the establishment of the department was in line with the global trend for oversight agencies like the Bank. The Internal Audit Department is responsible for reviewing the adequacy of internal controls within the Bank and testing their compliance with established procedures. While this department guarded the integrity of the Bank’s operations, a pertinent question was “Who guards the guards?” The answer to that query came in December 1997 when an Audit Committee of the Board of Directors was constituted. In addition to having oversight for the internal audit functions, this committee reviewed the draft audited financial statements of the Bank, in conjunction with the external auditors, Chapter 4: Maturity, Modernisation and Issues of Governance: 1987 and Beyond