public and financial sector crisis management. essentially, strengthening the rules governing fiscal, economic and financial policies is about defining what should be avoided in emu, for the good of all its members. however, the euro area also faces urgent questions about what can, or should be done. in a unitary state, the party of government would set this agenda. in the euro area, it is the role of policy co - ordination. co - ordination is essential to provide the euro area with leadership and ensure that all countries progress on the same trajectory. at present, the major challenge requiring greater coordination is ensuring sustainable and balanced growth across the euro area. projections of the euro area ’ s growth prospects remain weak, depressed by the fiscal burden of age - related expenditure, slow productivity growth, and ongoing debt sustainability challenges. in this context, a comprehensive programme of growth - enhancing structural reforms is essential to elevate growth potential. this means that euro area countries must fully implement the europe 2020 strategy, supported by intensive monitoring and follow - up. the key to the success of the euro plus pact is also implementation. as it is inter - governmental and relies on voluntary commitments, there is much scope to selectively implement certain reforms. this was the flaw of the lisbon agenda and it should not be repeated. political ownership by the heads of state or government is therefore critical to ensure that all euro area countries set ambitious commitments and rigorously apply them. over time, member states could demonstrate their commitment to deep structural reform by incorporating the key elements of the euro plus pact into the legislative framework on economic governance, and therefore giving them binding legal force. strengthening policy co - ordination creates solidarity and substitutes for the fact that the eu is a political community without a nation. on the one hand, it makes the collective responsible to the individual. intrusive mutual surveillance ensures that each country realises its growth potential. bis central bankers ’ speeches on the other hand, it makes the individual responsible to the collective. implementing necessary reforms reinforces overall stability and shows commitment to the euro area as a whole. conclusion a famous resident of the city of florence, niccolo machiavelli, wrote these well - known words in the prince, chapter vi : “ it must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle than to initiate a new order of things. ” nevertheless, having understood the lessons of the crisis, it would be irresponsible for policies makers not to

responding to malicious behaviors and incidents, because even the best preventative controls will not prevent all incidents. there is just no such thing as perfect protection. as there are more and more innovative financial inclusion initiatives coming on - board, we will all need to continually reassess how much risk and controls are appropriate. the disparity between the speed of compromise and the speed of detection is one of the starkest failures discovered in breach investigations. according to a 2015 report by mandiant, the average targeted malware compromise was present for 205 days before detection. the longest malware presence was 2982 days, and 69 % were actually discovered by external parties and not internal it security functions. additionally, the 2015 verizon data breach investigations report highlighted that, “ in 60 % of cases, attackers are able to compromise an organization within minutes. " in this digital world, the pace of change and innovation is already too fast to anticipate and, combined with advanced and persistent attacks, it will be impossible to defend against every type of cyber - attack. organisations must invest in technical, procedural and human capabilities to detect when a compromise occurs. they must provide the tools for first responders to react quickly and investigate the source and impact of breaches, compromises and incidents. most essentially, there is a need to balance the right mix of investments across prevention, detection and response capabilities vis - a - vis an organisation ’ s risk appetite. not only are new and advanced tools needed to supplement existing protection solutions, but also new skills and culture need to be developed within existing security teams and the larger organization, more so within the ambit of digital financial services whereby regulatory compliance plays a major role in cybersecurity. 2 / 3 bis central bankers'speeches regulatory compliance does not equal cybersecurity regulations are designed to protect organisations, clients, and consumers against the potentially devastating consequences of cyber - attacks. regulatory requirements for financial institutions have undeniably become tougher, and organisations are continuously burdened by the need to interpret what a fragmented global regulatory landscape means for their operations. financial institution often find themselves chasing regulatory compliance, rather than leading independent security planning. regulatory compliance by itself is not cybersecurity. when new cybersecurity requirements or frameworks are published, organisations must first determine their current security state and identify gaps. if routine testing and remediation are conducted, being compliant or meeting regulations should be easier to achieve. of course, some parties will want or need