kijang to provide a platform for the meeting of minds and to harness the wealth of expertise in the field of central banking and finance. as a centre for collaboration, sasana kijang has wide ranging facilities for regional and international meetings, seminars and conferences. these facilities are also shared with the south east asian central banks ( seacen ) research and training centre and the islamic financial services board ( ifsb ) which are now located in sasana kijang. for the seacen centre, it is hoped that all the available facilities will support its enhanced role in the region, particularly, as financial and economic integration in asia intensifies. for the ifsb, an international organisation that was established as a result of the collaborative efforts of regulators from different parts of the world, it is hoped that it will facilitate further collaboration in the development of islamic finance and in safeguarding its soundness and stability. this is in fact what sasana means in sanskrit – a convening point for the wise and learned. when combined with kijang, a word that is strongly associated with the bank, sasana kijang represents a powerful meaning that is consistent with our identity. the architectural concept of sasana kijang is also inspired from our earliest form of currency that was used in the third century and which denotes a harmony of simplicity and class. and the facade design of the building is derived from the geometric patterns of the traditional malaysian songket fabric which is woven with intricate gold and silver threads which creates a strong bond, thus giving the fabric its strength and elegance. this is similar to the central banking community that is interlinked through our similar objectives and bonded through collaboration and strategic alliances. other features of the building is the extensive use of glass which allows for the greater use of natural light. the building also features a range of green technologies as part of our commitment and responsibility to the environment. finally, another important part of sasana kijang is the bank negara malaysia currency and economics museum and the art gallery that will be opened to the public. these collections that have been built since the earliest days of our bank over a period of more than five decades aim to foster greater understanding on the history of our currencies and of our economy and financial system, and also represents our support to contemporary art in malaysia and thus contribute towards preserving the heritage of our country. allow me now to invite yang amat berhormat, dato ’ sri mohd. na

go in for plain vanilla derivatives which upfront, transparently, and explicitly, disclose cost of hedging strategy rather than arcane, complex, synthetic and structured derivatives which camouflage risk. as regards prudent use of derivatives, the touch - stone that business and industry can use with profit is that any derivatives strategy which promises reduction, or elimination, of hedging cost, or promises enhancing income, is intrinsically speculative and the one that involves incurring hedging cost and promises no income enhancing is intrinsically a hedging strategy. 11. to sum up, such is the insidiousness of risk that its under - pricing is perceived as low, or no risk, and, therefore, economic agents including banks, business and industry are caught unawares and unpleasantly surprised when risk suddenly eventuates. therefore, to my mind, nothing conveys and expresses the risk management mantra more trenchantly than the following : “ just as you make friends when you don ’ t need them, not when you need them and certainly not after you need them, so also you hedge when you don ’ t need it, not when you need it and certainly not after you need it ”. complete internalization and ingraining of this holistic risk hedging culture, attitude and temper by business and industry will, in equilibrium, reduce cost of both debt and equity capital by reducing volatility of roe as markets will perceive them as much less risky and more safe! if i have succeeded in alerting and sensitizing the learned and discerning audience to the financial risk management imperative enough, i will feel vindicated that i have delivered on my dharma today. and, i have no doubt, if business and industry completely internalize and ingrain this mantra and dharma, they will exemplify the following fairy tale ending viz. “ and they lived happily ever after ”! finally, with the fond hope that i have not unwittingly come across as pontificating on the mantra and dharma of financial risk management, i conclude my address and going forward wish business and industry a truly blissful risk management nirvana! 12. thank you all so very much indeed!! bis central bankers ’ speeches