adequately anticipated or managed. j. smyrk, “ enhancing business projects in statistics new zealand : learning from the hlfs - cai initiative, a report on a review of hlfs - cai ”, september 2005. bis central bankers ’ speeches innovation is critical to strong business performance as organisations seek to enhance product and service offerings, lift efficiency, upgrade technologies and increase their resilience and adaptability. without innovation, organisations wither and customers and business owners suffer. becoming ideas constrained is fatal, but there are risks in innovating. as machiavelli said centuries ago, “ never was anything great achieved without danger. ” risk and reward are inextricably intertwined. leaving the boat safe in its harbour will not yield progress. good risk management is imperative for managing successful change. it involves anticipating and diminishing threats ; protecting sources of value ; and enabling value - creating risks to be taken in a calculated way, with reduced likelihood of failure or loss. 2 done well, it enables an organisation to seize opportunities to create and protect value for all its stakeholders. good risk management enables an organisation to move forward, because the downside risks of change are contained, and risk management provides a forward - looking orientation. it allows organisations to focus their competencies on value creating activity. done well, it informs strategy, investment prioritisation and business decision - making. it drives organisational direction and positioning. a second key benefit is that it reduces the likelihood and costs of adverse events that may damage organisational reputation, financial or business viability, and distract the organisation from achieving its goals. novopay, and acc ’ s privacy breaches, are familiar examples where the organisational and societal costs of risk management failures have been considerable. good risk management fosters both adaptability and resilience, two crucial aspects of enduring organisational performance. types of risk generally, three categories of risks are identified : strategic, operational and project risks. 1. strategic risks describe the impact on the business of possible changes in the wider environment, such as political, international, demographic, social, etc., and the dangers of business strategies not being adequately aligned to their operating environment. they also entail risks to the accomplishment of key business goals through loss of focus, inappropriate investment or resourcing, and reputational and communication risks. mitigations of strategic risks tend to be strategic choices and business model approaches ; investment prioritisation decisions during planning processes, often resulting

in more detail shorly. but, first, i want to revisit the role of central bank money and why it matters. the public role of central bank money our monetary system is made up by both central bank and private money. currently private money exists only in digital forms, while central bank money used by the public is in physical bank notes and coins. while central bank money might take more widely used digital forms in the future, this does not change its essence. the following “ money taxonomy ” graphic illustrates these different types of money. central bank money performs two critical roles to support public confidence in the money of the future. that is, first, central bank money provides a safe and trusted value anchor for the monetary and financial system and, secondly, it provides a fair and equal way to pay for all that supports inclusion. these two unique attributes are central to understanding why central bank money matters so much and why we at te putea matua are investing so much effort in understanding and addressing these issues. maintaining a healthy monetary system is at the core of what it means to be a central bank, and providing and stabilising money, both public and private, is central to this. the reserve bank ’ s reason for being can be traced back to the need for a public monopoly over the production of banknotes and coins when the reserve bank was created in 1934. today, banknotes and coins remain the only form of central bank money that the public can access directly – although we have long used electronic central bank money in the accounts we transact with, and settle transactions between, major banks. central bank money has always _ _ _ _ _ _ _ _ _ _ _ _ the links to the documents can be found here : https : / / www. rbnz. govt. nz / notes - and - coins / future - of - money coexisted with private money. private money is currently far more significant in volume, transacted through bank accounts which are already digital. central bank money continues to play a crucial role. it supports public trust and confidence in private money through the promise of one - for - one convertibility. central bank money brings some distinct advantages to this partnership : it is liquid, stable, uniform and backed by the state. it is all that and more because it is created in the public interest. that promise of one - for - one exchange is further underpinned by ensuring that private banks are managed prudently, through our regulation and