cannot afford to be tainted by the actions of a few bad apples. any unscrupulous behaviour exhibited by a player should not be tolerated and be weeded out immediately from the industry. to protect the financial ecosystem, each organisation has the responsibility to investigate any misconduct and record the outcomes to allow other institutions in the market to make informed decisions on the ability of a person to serve with professionalism and integrity. in this regard, the bank is currently pursuing an initiative that will mandate the sharing of employment references with future employers to mitigate the problem of ‘ rolling bad apples ’ within the malaysian financial industry. specific and rules - based regulations, while able to lead institutions in the right direction, do not guarantee the internalisation of such values within bankers nor are they dynamic enough to catch up with new ways of breaching ethics. therefore, the bank will also be expanding its supervisory focus on financial institutions beyond balance sheet ratios, and incorporating organisational culture in our radar such as tone from the top, echo from below, accountability, communication, remuneration and performance management. this is a challenging but necessary task that requires creativity in exploring unconventional supervisory approaches including interviews and questionnaires for employees of financial institutions among others.. risk management as part of business strategy finally, risk managers must move away from merely compliance and loss prevention. risk managers must reposition themselves to be more engaged in strategic business decisions within their respective organisations. chief risk officers ( cros ) must have a broad and independent view of the organisation, with an ability to anticipate potential disruptions and to influence decision - making. however, according to a global survey conducted by pwc last year, only 1 / 3 of risk officers view themselves as part of the business. especially now in the age of disruption, risk managers should not view themselves as mere compliance officers or the mundane department that says ‘ no ’ to exciting business opportunities. instead, risk managers need to also think in terms of finding the right risk - return trade - off. risk management must go beyond the prevention of losses and play an active role in driving business sustainability and enhancing shareholder value. given the importance of enterprise risk management, efforts need to be directed to give prominence to this function. it is time for the stature of risk functions to be elevated. professional bodies like the ierp play a crucial role in stewarding this transformation by equipping risk management experts and raising their credibility through branding and professional qualifications. events like this conference can help propel the risk management

risk management is vast, not only for the automation of tasks, but increasingly as a tool for making business decisions as well. the application of big data analytics and artificial intelligence to assess and predict human behaviour, for instance, can provide great value to businesses in terms of reducing risks. in the motor insurance sector for example, general motors assurance in the us has been utilising mileage and driving behaviours captured through in - vehicle telecommunication devices. telematics, as this approach is called, enables the incorporation of personalised information distinct to the policyholder in setting insurance premium prices and rewards those who continuously maintain good driving standards – a winwin situation for both the insurers who mitigate their underwriting risk and consumers who benefit from lower premiums. technology has also advanced to a level where machines ’ capabilities extend beyond simple tasks, but also able to carry out complicated tasks by professionals more quickly and efficiently. a bank in the us, for example, has created a machine - learning programme to sieve through and review legal contracts in mere seconds, saving 360, 000 of labour hours which are better spent on more productive tasks. it is an ideal worker – having a low margin for error which minimises the occurrence of costly mistakes, and better yet, never gets ill or asks for leave. of course, 1 / 5 bis central bankers'speeches investments in technology may be expensive and returns may not be immediate. it is, nevertheless, not a choice and it is crucial to start early. not innovating along with the latest technology should not only be seen as lost opportunities, but also lead to risk of your business being rendered obsolete. business transactions and financial services are becoming more digitised and reliant on the internet. alongside this, the extent of technology risks and the level of sophistication of cyberattacks are rapidly expanding. there is a need for risk managers to be quick in identifying and responding to cyber risks. with increasing dependence on information technology, institutions are faced with numerous threats such as distributed denial of service, malicious hacking and virus attacks which affect vital services provided to customers. barely a week ago, the vulnerability of major organisations to such attacks was laid bare when a massive “ ransomware ” virus hit up to 300, 000 computers across 150 countries including malaysia. judging from its name, the “ wannacry ” virus clearly achieved its aim as users found themselves locked out from their computers and their data held at ransom. a host of organisations were left