, outsourcing arrangements involving certain customer information will be subject to a higher standard of care. • third, a greater focus on fis ’ outsourcing risk management framework. fis were previously expected to pre - notify mas of any material outsourcing arrangements, and mas would impose prudential requirements on the fi, where necessary. with the growing prevalence and complexity of outsourcing arrangements, such a caseby - case approach has become less tenable. instead, mas will continue to assess and monitor the robustness of fis ’ outsourcing risk management frameworks while fis will continue to be responsible for ensuring the safety of all of their outsourcing bis central bankers ’ speeches arrangements. the revised guidelines will no longer require fis to pre - notify mas of any outsourcing arrangements. 24. the guidelines are not intended to be exhaustive. mas recognises that the diverse range of outsourcing arrangements and rapid pace of progress in digital technology preclude a prescriptive approach to risk management practices for outsourcing or a one - size - fits - all set of rules. mas will adopt a risk - based approach in implementing the guidelines. conclusion 25. let me conclude. 26. a tougher macrcoeconomic environment and growing complexity of operational and technology risks will place greater demand on banks ’ risk management and compliance systems. even as banks continue to upgrade their systems and processes to strengthen their risk resilience, it is equally important that banks regularly test the robustness of their contingency plans and capability to manage tail risk events. i am glad that the industry continues to demonstrate its commitment to sound risk management with your investments in systems, technology and in your people. mas appreciates your close co - operation to develop and update our risk management guidance, and your active participation in iwst exercises. thank you. bis central bankers ’ speeches

environment began to present a perceptibly brighter picture, turnover also picked up. this, together with the more confident investor sentiment, reduced volatility. the ambitious profit expectations now reflected in share prices suggest that market players are optimistic about the economic situation and the corporate environment. to sum up, the financial markets are currently influenced by a complex interplay of factors : a globally synchronised economic recovery is taking place against a backdrop of external imbalances. an autonomous economic recovery outside of the us - underpinned, not least of all, by supply - side reforms - would help substantially to redress these imbalances. key features of the snb ’ s future investment and risk control process the snb ’ s investment activity is subordinated to monetary policy and is determined by the criteria of liquidity, risk and returns. the new national bank law will extend the snb ’ s investment opportunities. the current national bank law ( nbl ) limits eligible investments to gold and fixed - interest securities, and eligible borrowers to states, international organisations and banks. article 9 of the new nbl defines a wider scope of possible transactions. this allows the national bank to further optimise the structure of its investments with a view to specific central bank needs. as part of this process, we are also evaluating the possibility of enlarging the investment universe. however, such an extension would raise a number of fundamental questions that will first need to be examined. before the new law enters into force, we will establish and publish investment policy directives setting out how the governing board plans to make use of the extended investment policy scope. while our assets have already been managed largely in conformity with the principles of modern asset management, improvements were nevertheless called for. it was essential to bring our internal investment and risk control processes into line with the new legal framework. the opportunities for diversification brought about by additional investment instruments would, in principle, reduce the market risk of the investments. at the same time, though, the snb would incur new risks, e. g. additional credit risks. in addition, corporate governance is to be enhanced. the primary goal is to segregate powers as far as possible : firstly between monetary policy and investment policy operations, secondly between investment strategy and its implementation through asset management, and thirdly between risk taking and risk controlling. there are limits to the principle of segregation of powers insofar as the governing board is responsible both for monetary policy and investment