CBUAE Opens 19th International Risk Conference in Abu Dhabi

Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates (CBUAE), inaugurated the 19th Annual Conference of the International Operational Risk Working Group (IORWG). The high-level event is being hosted in Abu Dhabi from 30th September to 2nd October, gathering central bankers, financial experts, and international leaders to discuss the future of operational risk management.

CBUAE’s Commitment to Risk Management

The conference reflects the strong commitment of the UAE Central Bank to advancing both national and global capabilities in risk management. It highlights the Central Bank’s continuing efforts to build new risk methodologies and improve regulatory frameworks. A key focus of these efforts is developing innovative practices that enhance financial stability and strengthen the sector’s ability to respond to operational threats.

Global Participation and Collaboration

The annual gathering has brought together senior officials from nearly 100 countries. Among the participants are representatives from central banks, financial institutions, the International Monetary Fund (IMF), the European Central Bank (ECB), and the Bank for International Settlements (BIS). The event provides a platform for sharing knowledge, exchanging expertise, and identifying best practices to face operational challenges worldwide.

UAE’s Role in Global Leadership

Hosting this conference places the UAE at the center of global discussions on operational resilience. It demonstrates the country’s ability to contribute to international cooperation while highlighting its growing role as a leader in financial innovation. The UAE continues to build its reputation as a nation that embraces innovation, forward-looking strategies, and global partnerships.

Governor’s Opening Speech

In his remarks, Governor Khaled Mohamed Balama emphasized the UAE’s progress in becoming a leading hub for finance and technology. He noted that the Central Bank plays a key role in supporting the “We the UAE 2031” vision, which seeks to make the nation more secure, innovative, and ready for the future. He underlined that enhancing operational resilience is an essential step to facing challenges and benefiting from emerging opportunities.

Conference Themes

The three-day conference focused on three major themes that are shaping operational risk management:

• Integrated risk management supported by advanced governance and artificial intelligence.

• Vendor and third-party risks that affect financial institutions.

• Individual risk and its management.

In addition, experts discussed wider topics such as process improvement, resilience planning, and methods to reduce operational risks in a rapidly changing environment.

Strengthening Operational Resilience

The Governor confirmed that operational resilience remains a top priority in the Central Bank’s action plan. The CBUAE has introduced updated regulations and new standards for risk management that apply to all licensed financial institutions. These frameworks are aligned with international principles developed by the Basel Committee on Banking Supervision.

Expanding Regulatory Standards

In line with its strategy, the CBUAE is also preparing additional standards focused on cyber resilience, third-party risk management, disaster recovery, and business continuity. The Central Bank is also investing heavily in talent development, building a culture of integrity, and training employees to adapt to future challenges. These steps ensure that institutions are ready to face operational shocks and respond effectively to risks.

Driving Financial Innovation

Alongside risk management, the Central Bank is committed to driving innovation in the financial sector. In 2024, it launched the Open Finance Regulation, the first of its kind in the region. This regulation allows greater data-driven growth and accountability, ensuring secure partnerships with third-party service providers. It represents a milestone in supporting digital transformation in the financial industry.

Another significant initiative is the introduction of the Central Bank Digital Currency (CBDC). This project combines advanced technology with strong regulatory frameworks, reflecting the UAE’s ambition to lead in digital finance. The CBDC is seen as a transformative step that could redefine the financial system by creating new opportunities for efficiency, transparency, and security.

Through conferences like the IORWG, the UAE strengthens its position as a global hub for risk management and financial innovation. The combination of regulatory reform, digital transformation, and international cooperation will allow the UAE to continue building a resilient and future-ready financial system. By aligning with the “We the UAE 2031” vision, the Central Bank ensures that financial growth and stability remain at the core of the nation’s development journey.