which a firm has effected an risk mitigation action has not resulted in the risk being reduced to an acceptable level, he or she will write a replacement programme, requiring further action by the firm or, perhaps, requiring a third party or a specialist team from within the central bank to take action. wilful non - compliance with risk mitigation programme will be taken seriously with enforcement action being considered in instances where it is apparent that failure to comply with a risk mitigation programme has left a firm in breach of a regulation or law. bis central bankers ’ speeches spotting trends and tracking risks one advantage of supervisors using an integrated system to challenge firms, judge risk and mitigate unacceptable risk is that, over the course of time, the central bank will assemble a powerful quantitative and qualitative database about the riskiness and behaviour of firms. the senior leadership of the central bank will be able to review management information on evolving risks across sectors and sub - sectors, enabling us to consider whether a policy or enforcement response might be appropriate, alongside the firm centric work of individual supervisors. we will also be able to track which firms are habitually non - compliant in terms of working with us in a timely manner to mitigate key risks and take appropriate action. as a central bank we have management information already but prism will offer us a new dimension by cutting newly aggregated data in fresh ways, enabling us to monitor emerging risks in different sectors much more easily. clarity and consistency for regulated firms as you ’ d expect, i ’ ve focused for much of this speech on the benefits which prism will deliver in terms of financial stability and consumer protection but, moving to risk based supervision offers real benefits for firms, particularly for firms with sound business models. let me explain what i mean : firstly, prism creates a common framework for central bank supervision of financial firms. in doing so it should help us achieve consistent supervisory interaction with equivalent firms. concerns around inconsistency between firms have been raised with me in the past ; i hope firms and trade bodies will find prism helps address those concerns. secondly, prism will allow us to see patterns across the different sectors within financial services much more easily, allowing senior management to obtain a real time overview of where supervisors perceive most risks to be. prism will allow us to see the sectors in which new risks are emerging and to take actions focused on the characteristics of that sector or sub - sector. this will materially reduce the likelihood – and i know some in industry

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