outsourcing. one result is stating the obvious : there is some concentration in terms of companies to which banks outsource it functions. apart from concrete bank - specific findings, the reviews have helped us to get a better idea of the risks. and they have made banks more aware of them. we have conducted a stocktake on how it risks are supervised outside the euro area. this helped us to identify best practices ; and it will help us to define our own supervisory expectations. work is ongoing as part of our contribution to the work programme of the european banking authority, the eba. we have conducted quite a few on - site inspections into it and cyber risks, using state - ofthe - art methods. looking ahead, our aim would be to have such inspections every three or four years for large banks. we have set up a reporting framework for cyber incidents. since mid - 2017, banks have been required to report significant cyber incidents. this will help us to quickly react in a crisis and make us aware of common vulnerabilities. drawing on guidelines from the eba, we have developed comprehensive it risk selfassessments for the banks we supervise, including an extensive section on it and cyber security. the results of these assessments will feed into our supervisory review and evaluation process, in which we will also challenge the information provided by banks. we will do so as a result of our insights from on - site inspections and from reports of cyber incidents. the 1 / 2 bis central bankers'speeches information collected will then serve as a basis for a thematic review of it risks. this review will give us a better idea of the overall it risk landscape in the banking industry. it will allow us to identify blind spots early on and define areas which we need to investigate further ; this will eventually feed into our plans for 2019. in addition, the review will also help us to compare banks. partially anonymised feedback could then be shared with them. ladies and gentlemen, there is one thing we need to keep in mind. right from the start, hacks gained a lot of attention, while preventing them did not. in finance, as in many other fields, it is mostly just mundane work that helps to keep things safe. i wonder whether cyber risk is as unique as we are inclined to believe. i have no doubt that we need to take it seriously and that we need to work towards making banks more resilient. in doing so, we should also welcome new ways

/ sp121203. en. html. bis central bankers ’ speeches greater in the past couple of years, taking into account the generally increasing demands for collateral assets coming from various quarters. efforts are therefore being made to seek out creative and innovative ways to make better use of existing collateral in terms of making these assets available, when and where they are needed. both the eurosystem and the industry have taken a number of initiatives in this respect. at today ’ s conference, you will probably hear more about the many innovative solutions that are coming from the industry in this respect, so i will limit myself to some key initiatives in which the ecb / eurosystem is directly involved, although naturally cooperating closely with the industry. the first initiative in this respect of course is target2 securities – t2s. the main objective of establishing this single european infrastructure for securities settlement is to reduce risk and increase efficiencies in the post - trade environment, especially as far as cross - border settlement is concerned. this greatly enhanced process for transferring collateral across national borders in europe will in itself be a huge benefit to market participants – both to cover collateralised money market transactions as well as collateralised credit operations with central banks. moreover, t2s incorporates several features that aim to help banks optimise their collateral management. once t2s goes live for example, banks will no longer need to hold multiple buffers of collateral when settling in several european countries and can instead use the state - of - the - art t2s auto - collateralisation and self - collateralisation features, also on a cross - border basis. the second initiative that i want to mention is the implementation of cross - border triparty collateral management services within the eurosystem collateral framework. triparty services, as you know, involve a triparty agent acting as a facilitator between the two parties to the repo. triparty services are already used within the current operational framework of the eurosystem, although only on a domestic basis and limited to a small number of euro area countries ( germany, luxembourg, france and italy ). in 2014 however, the possibility to collateralise eurosystem credit operations by using triparty services on a cross - border basis will be introduced, thereby allowing for greater efficiencies in collateral mobilisation and re - use of collateral received in triparty repo with the respective central banks of the eurosystem. another initiative with which the ecb