Re-establishing the resilience of the financial sector: aspects of risk management and supervision
Opening address by Mr Jaime Caruana, General Manager of the BIS, at the Fifth Biennial Conference on Risk Management and Supervision, Basel, 3 November 2010.
As standard setters roll out a massive reform package, we must be careful to also focus on the quality of the implementation of these reforms. This will ensure more effective supervision and hopefully prevent firms from taking on excessive risk and employing too high leverage in the future. A proper implementation of standards will need to be complemented by vigilance and courage on the part of supervisors and risk managers alike. Both should take a more proactive approach when necessary.