Key Message 2 - Rethinking risk The second imperative calls for a re-thinking of risk by Islamic financial institutions. Nontraditional forms of risks such as social, political and environmental risks are business threats that simply cannot be ignored. Research indicates that there are material benefits to managing these risks more proactively. An IFC survey of global banks showed that around 86% of respondents which integrated social and environmental risks in their business have yielded positive business results. There are also growing calls by shareholders for financial institutions to play a more proactive role in the sustainability agenda. I am among those who believe that the true mark of a sustainable financial system ultimately lies in the extent to which, the market’s and management’s view of risks reflect sustainability factors. In June 2017, the Financial Stability Board published recommendations, for helping businesses disclose climate-related financial information. In the context of “finance beyond profit”, this was a significant development by a global standard setting body, and the broader G20 community, to encourage the provision of better information on climate-related risks and their financial impact. For many, this is both a reflection of, and catalyst for, the closer examination of risk- and impactadjusted returns, by capital and funding providers. As natural stewards of sustainable finance models, Islamic financial institutions are well placed 2/4  BIS central bankers' speeches  to develop richer perspectives of social and environmental risks. This calls for a review of internal risk decision-making processes and inputs within financial institutions, alongside enhanced disclosures to market participants.

Denny H Kalyalya: Zambian financial sector – responding to the needs of business Speech by Dr Denny H Kalyalya, Deputy Governor-Operations of the Bank of Zambia; at the opening of Standard Chartered Bank Zambia Solwezi Branch, Solwezi, 10 December 2008. *  *  *  The Minister of Commerce, Trade and Industry, Hon. Felix Mutati The Minister, North-Western Province, Hon. Joseph Mulyata The Chairman of the Board of Standard Chartered Bank Zambia, Mr. George Sokota His Worship the mayor of Solwezi The Managing Director of Standard Chartered Bank, Mrs. Mizinga Melu Distinguished guests Members of the press Ladies and Gentlemen I am pleased to be here at the official opening of the new Solwezi Branch of Standard Chartered Bank Zambia Limited. Ladies and Gentlemen, recent times have shown a proliferation of commercial bank branches in areas which had previously been considered unattractive for business. Rural areas had even experienced closures where banks felt that they were unable to establish a case for business. The economic environment that the Government created through the reforms instituted in the early 1990’s has given new confidence to investors and has provided an opportunity for businesses to grow, thereby attracting banks to the areas which were deprived of basic financial services. The opening of this branch today, in a town which has attracted major investments, is a demonstration that the financial sector is indeed, now responding to the needs of business.