by some activities such as asset management, it appears necessary to gain a better insight into the transmission channels of these risks between activities carried out for banks ’ own account and for third parties as well as the liquidity requirements generated by the latter. more generally, the methods used to assess and capture some risks such as reputational risk and strategic risk, notably in the context of pillar 2, need to be developed. i would like to stress the very important role that pillar 2 must play in improving banks ’ management practices i ) regarding new risks not covered by pillar 1 and ii ) in areas that supervisors deem, specifically, liable to become new sources of vulnerability. in practice, for some activities, there are still no universally accepted standards for risk management. this does not mean, however, that banks ’ risk management processes in these activities are always sufficiently stringent, but rather that there is a wide range of instruments available for this purpose, each with its advantages and disadvantages. this also means that supervisors should not carry out a mechanical assessment of these risks and their management by banks such as would result for example from the simple observation of a statistical confidence interval. the assessment must be more refined. in addition, pillar 2 should ultimately serve to improve risk management in the areas that supervisors, at a given moment, deem to be crucial for financial stability, using a forwardlooking approach. lastly, the recent financial turmoil has highlighted the difficulties and risks associated with the valuation methods used for certain financial instruments, particularly complex structured products but also some products regarded as more straightforward. indeed, a sometimes very great disparity has been observed between the theoretical valuations derived from models and market values. however, the issue of the accurate estimation of the price of complex transactions has taken on particular importance with the gradual adoption across the board of fair value assessments since the entry into force of the new accounting standards ( ifrs ). in this respect, it seems necessary to include in risk assessments assumptions of an erosion of liquidity and a rise in volatility as well as, more generally, to ensure that processes for monitoring valuations within banks are strengthened. in particular, it is vital to reinforce critical, independent and regular analysis of valuations obtained for certain complex positions, which appear to have relied too often on external data supplied by external rating agencies or service providers, without real analysis of the characteristics of the underlying and collateral. it is also important to increase the banks ’ transparency with regard to information on fair value

counter to our independence, but two additional risks that appear more specific to the current period. the first risk is the dictatorship of short - termism, imposed on us by the recent series of crises. of course, we have to deal with them, but we must not become a prisoner of emergencies. we must continue to focus on the longer - term, in keeping with our role of advanced sentinels : central banks rely on their close monitoring of all financial and economic indicators, and also on their anticipation of how they may evolve in the future. the second risk is that of corporatist fragmentation. it is the other disease of the century. of course, we are not responsible for it, and we are not corporatists. but we could be sinning by omission, by passiveness. contrary to a longstanding approach whereby central backs only dialogued with financial specialists, we must now direct our communication at all economic agents, page 7 sur 10 including the general public. a better - informed society across categories allows for a better understanding of monetary objectives, and hence a greater efficiency of monetary policy. tailored and active communication is now a centrepiece of central banks ’ actions. in 2021, the “ banque de france listens ” initiative included 17 events, with an audience of 300, 000. this year, the banque de france organised its annual national monetary policy forum, reaching an on - line audience of 500, 000. it adds up to sustained efforts on financial education : in 2021, almost 40, 000 young people benefitted from our actions, and we are stepping up again in 2022. iii. does the international dimension of monetary trust still exist? whether or not the international dimension of monetary trust can still inspire us is a key question for the imf, which has sought to embody it since 1944. it has become a painful question, with the ongoing destructive russian war in ukraine adding to the other illnesses of multilateralism in the last six years, from brexit to populism and ( poorly - disguised ) protectionism. let us acknowledge it frankly : the g20 is today not in good shape, whereas it had been key to great progress over the last twenty years. and sanctions against russia divide it. it is still hotly debated whether these sanctions are necessary and efficient, or on the contrary, whether they are counterproductive for the countries that initiated them. i believe that we should stick to a few simple facts and principles :