of business that " the empirical distributions of price changes in a speculative market are usually too peaked to be viewed as samples from gaussian population. … there are typically so many outliers. … i replace the gaussian distribution throughout by l - stable ( stable paretian ) laws. " it is only from this point of view that we are able to understand what noah and joseph have to do with financial markets, as professor mandelbrot explained yesterday in his lecture in frankfurt. studying mandelbrot influences our understanding of financial markets. he warns that a restrictive distributional assumption for financial data – namely, the normality assumption – may lead to the underestimation of risk in the financial markets. this conference will discuss new theoretical developments in professor mandelbrot ’ s approach and present new applications in the fields of risk analysis, exchange rates and portfolio management. therefore, the conference will make a contribution to the ongoing development on professor mandelbrot ’ s view on financial markets. moreover, the conference aims to bring these highly academic issues closer to practitioners. i wish every participant an exciting and stimulating time during the conference. 2 / 2

need target - based management. we can ’ t have one without the other. in light of the environmental changes that i outlined at the start of my speech, once a strategy has been adopted it needs to be monitored on a regular basis to ensure it remains up to date. this is why we have annual strategy reviews, which look at both the extent to which strategic measures have been implemented and any changes that have occurred in the environment. these reviews also act as the basis for operational planning. translating strategic planning into operational planning is a second challenging area of target - based management. the motivation and willingness of staff to implement a strategy is one thing, but translating this strategy into measurable – and therefore reviewable – operational objectives is quite another. “ what gets measured gets done ” is a well - known maxim in the anglo - saxon management literature. this is why we are in the process of devising a cascading series of measurable indicators for our strategic goals. this too, is anything but trivial. indeed, there are grounds for a lively debate about whether some indicators accurately measure the phenomenon they are supposed to gauge. please allow me to explain the way indicators are assigned to strategic goals using the example of “ external communication ”. the core objective of external communication is “ to ensure that the bundesbank ’ s positions are communicated credibly, consistently, transparently and effectively to the outside world. ” we have broken this down into a number of development targets, such as : • “ improving our ability to promptly take a stance ” • “ increasing transparency with respect to the impact of communications ”, and bis central bankers ’ speeches • “ expanding direct public communications. ” to illustrate the point further, i will now outline the two measures and corresponding indicators that have been assigned to our target of expanding direct public communications. these are • first, “ setting up and maintaining up - to - date webpages for the public ”, with the indicator being the “ number of website visits ”, and • second, “ holding an open day ”, with the indicator being an “ evaluation of the open day ” – for example by analysing visitor numbers, evaluating the media response or interviewing visitors. only when the strategy has been fleshed out with indicators down to the operational level will it be possible to effect its implementation. if this does not occur, there is a serious risk that the strategy will simply be filed away and forgotten. 7. “ making our case ” is something we all need