Governance, Risk Management, Reporting, and Control at the Central Bank of Colombia

There are several factors that can lead to successful outcomes in asset management at central banks and monetary authorities. For instance, having a robust asset allocation model, highly experienced portfolio managers, and sophisticated quantitative tools for implementing investment strategies. Nonetheless, in this chapter I will argue that governance, risk management, reporting, and control can be even more important than any of the factors mentioned above. That is true for any asset management operation but it is even more so for central banks, given the amount of reserves that they manage and the importance of their functions.