Strategic Planning of the Central Bank of Chile
The goal of this section is to communicate the Bank’s strategic planning process for the 2009–2012 period. This process, which is revised annually, is considered key for focusing and coordinating the efforts of all the units toward attaining the institutional objectives.
This team work resulted in a common view of the organization in terms of its scope and future development, which translates into simple, guiding concepts that are shared by all the Bank’s members, such as its mission, vision, and institutional values.
The Bank’s mission corresponds to the core mandate for which the Central Bank of Chile was created: To contribute to the proper functioning of the economy and to the welfare of all Chileans by safeguarding the currency stability and the normal settlement of internal and external payments.
The Bank’s vision represents what the Bank wants to become as an Institution over time: To be widely recognized as an autonomous, technical, world-class institution that has strong institutional values and is effective in achieving price stability and the normal functioning of the payments system.
The Bank’s values encompass the principles that should be shared by each and every member of the organization:
These concepts provide the basis for developing the strategic institutional objectives, which serve as the keystone for aligning the entire organization in the fulfillment of the institution’s goals.
Strategic objectives of the Central Bank of Chile
To keep annual CPI inflation at around 3% most of the time, within a range of plus or minus one percentage point.
To promote the efficient and safe operation of financial markets and to provide the currency and other payment means necessary to achieve it.
To prevent risk situations that could affect the normal functioning of internal and external payments and, in the event that such situations arise, to address them in a timely fashion.
To safeguard the Bank’s capital by carrying out an efficient financial and operational management, together with a diligent administration of the Fiscal Agent’s resources.
To contribute to the general understanding of the Bank’s policy decisions and of economic and financial affairs, through the generation and dissemination of reports, studies, and relevant macroeconomic statistics.
To diligently and efficiently fulfill the other functions that society has entrusted to the Bank, such as those associated with the Free Competition Tribunal, the Commission on Distortions, and the Monetary Fund.
Based on these definitions, the different units of the Bank proposed their own strategic objectives, as well as concrete initiatives to be developed in the 2009–2012 period, as a function of the established priorities and budget restrictions set by the Board.
This planning, which underscores the essence of the Bank’s role, and the changes to the internal structure that were applied in September 2005 together will allow the Bank to continue to successfully meet all the challenges that have arisen over the years and to be better prepared to face the challenges to come.
Strategic objectives of the different areas of the Bank
To head up the necessary changes to the corporate governance structure, organization, culture, and management, which ensure the fulfillment of the strategic institutional objectives.
To strengthen the Central Bank’s participation on the world stage, with an eye to being a leader in the region and among emerging economies.
Financial – Economic Group
To evaluate and propose alternative exchange rate and monetary policy initiatives for the fulfillment of the Central Bank of Chile’s objectives.
To improve the communication of the Central Bank’s exchange rate and monetary policy analysis and decisions (Monetary Policy Report, minutes, speeches, background material, etc.) to various interest groups, to ensure that the reports are comprehensible, precise, and consistent.
To carry out international-level research associated with central bank duties and aligned with the Bank’s objectives.
To foster a regulatory framework and infrastructure that contribute to the financial stability of the Chilean economy.
To monitor, evaluate, and publicize potential internal and external risks to financial stability, proposing initiatives for their mitigation.
To act quickly and diligently to address risks to the domestic financial system.
To implement the exchange rate and monetary policies of the Central Bank of Chile efficiently and effectively, minimizing credit and operating risks.
To efficiently manage the financial assets and liabilities administered by the Central Bank of Chile, safeguarding the institution’s financial capital and minimizing risks.
To efficiently execute the mandate of the Fiscal Agent, using procedures and mechanisms that guarantee the security and continuity of the activities.
To provide the financial system with large-value payment services and liquidity facilities and to settle the Bank’s open market operations, with high standards of reliability and operational security.
To generate timely information on the analysis and tracking of relevant financial markets, to support the financial operations of the Central Bank of Chile and contribute to the Board’s understanding of these markets.
To generate national, regional, and sectoral statistics in the areas that fall under the responsibility of the Central Bank of Chile and its policy conduct, maintaining high standards of quality.
To disseminate to the public information on the methods and sources used to generate statistics, with the goal of bringing the statistics to the communities of users and reporters.
To cultivate efficient work processes within the Division, taking into account the different stages of collection, compilation, and dissemination of the final statistics and using modern technological tools.
To instill confidence in the means of payment, with high-quality banknotes and coins and a timely supply.
To contribute to the efficiency of the cash cycle.
To work toward international standards of risk management.
Corporate Services Group
Institutional Services and Management
To promote and develop models that support strategic planning, the efficient use of resources, and risk management in the Central Bank of Chile, under certifiable standards based on the best practices applicable to the central banking.
To provide financial-accounting information services, acquisitions and infrastructure services, administrative support, and security services, with the degree of efficiency and quality specified in the service level agreement (SLA), in line with the best practices of the central banking.
To attract, develop, and retain top-quality personnel for the Bank, and keep them motivated and committed to achieving the institutional objectives and values, in a well-balanced personnel environment and labor climate.
To provide information technology services and solutions to the Bank’s information technology needs, in line with the best international and Central Bank standards, managing technological risks and incorporating best practices in information technology security.
To develop communications strategies for long-term positioning and for anticipating probable scenarios, which strengthen and improve the corporate image and reputation of the Central Bank of Chile, ensuring clarity and equity in the provision of information.
To promote activities that strengthen the corporate image, contributing to the process of public learning and familiarization with regard to the role and objectives of the Central Bank of Chile (so as to foster a broader and better understanding of its actions and messages) and economic issues in general.
To develop and implement internal communications strategies that cultivate and facilitate interpersonal understanding, the staff’s commitment to the mission, vision, and values of the Central Bank, a more favorable labor climate, and a greater knowledge of the Bank’s policies, regulations, and internal procedures.
Risk Assessment and Management
To provide timely, high-quality information on the Bank’s Financial Management in local and international market operations, measuring returns, monitoring risks, and ensuring compliance with international reserve investment policies, the Bank’s open market and debt policy, and the investment policy on the resources managed in its role as Fiscal Agent.
Audit and Legal Counsel Group
General Auditor’s Office
To diligently and efficiently carry out the mandate given by the Basic Constitutional Act (LOC), reporting to the Governor and the Board on the results of all evaluations undertaken.
To provide the Management, the Board, and the Audit and Compliance Committee with an independent and objective opinion on risk management, internal monitoring, and governance, with the goal of helping to prevent and/or anticipate risks and improve the efficacy of the processes.
To ensure and uphold our commitment to providing a high-quality auditing service and to pursuing continuous improvement, applying best practices and standards.
General Counsel’s Office
To provide the Board and Management with timely and specialized advice on internal and external legal matters associated with the Bank’s institutional framework, reporting on their content and scope, and also provide counsel on drawing up any proposals that are required to safeguard the Bank’s autonomy and technical characteristics.
To ensure that the Bank’s agreements, resolutions, acts, and contracts conform with the applicable legal and constitutional framework and protect against the legal risk in these documents.