and analyze in a meaningful way and unnecessary. for example, while supervisors may indeed need to be able to quickly value the balance sheets of systemically important financial institutions, very frequent updates as transactions occur and market prices change could lead to more volatility in values than fundamental conditions would indicate and would be extraordinarily expensive to provide and maintain. certainly, real - time data could be needed for regulators responsible for monitoring market functioning, and daily data would be helpful to measure end - of - day payment settlements and risk positions among the largest firms. but for supervising market participants, real - time market data could require enormous investments by regulators, institutions, and investors in order to be usable while yielding little net benefit. as policymakers consider redesign of a system of data collection, the goal should be data that are timely and best suited to the mission at hand. a second principle is that data collection be user - driven. that is, data on particular markets and institutions should be collected whenever possible by the regulators who ultimately are responsible for the safety and soundness of the institutions or for the functioning of those markets. regulators with supervisory responsibilities for particular financial firms and markets are more likely to understand the relevance of particular forms of standardized data for risk management and supervisory oversight. for example, supervisors regularly evaluate the ability of individual firms ’ own risk measures, such as internal ratings for loans, and of liquidity and counterparty credit risks, to signal potential problems. as a result, these supervisors have the expertise needed to develop new reporting requirements that would be standardized across firms and could be aggregated. third, greater standardization of data than exists today is required. standardized reporting to regulators in a way that allows aggregation for effective monitoring and analysis is imperative. in addition, the data collection effort itself should encourage the use of common reporting systems across institutions, markets, and investors, which would generally enhance efficiency and transparency. even seemingly simple changes, such as requiring the use of a standardized unique identifier for institutions ( or instruments ), would make surveillance and reporting substantially more efficient. fourth, the data collected and the associated reporting standards and protocols should enable better risk management by the institutions themselves and foster greater market discipline by investors. currently, because the underlying data in firms ’ risk - management systems are incomplete or are maintained in nonstandardized proprietary formats, compiling industry - wide data on counterparty credit risk or common exposures is a challenge for both firms and supervisors. further, institutions and investors cannot easily construct fairly basic

we believe that the best ideas, policies and, ultimately, service to the public are the result of diverse perspectives, and from a staff that reflects the rich diversity of our nation. inclusion makes us stronger by providing all employees the assurance that they will be working in an environment that welcomes and values their differences, and that recognizes and rewards people according to the contributions they make in advancing the mission of the organization. that is not to say that we have all of the solutions, or that we do not have considerable progress to make. but we have made efforts in a number of areas. these efforts are consistent with the congressional directive to establish the office of minority and women inclusion, and as articulated in the board of governors'strategic plan for diversity and inclusion. 2 first, we have made a commitment, and have made progress, to make our institution more diverse. that includes efforts to bring greater diversity to the board of directors of our federal reserve banks and branches as well as to senior leadership in the federal reserve system. we have also worked to improve our internal culture. these efforts include re - establishing and strengthening employee resource groups. we are working to come up with codes of conduct including efforts to make our meetings more inclusive and set rules around behavior in seminars. we are also providing diversity and inclusion as well as bystander training to both new and 1 / 2 bis central bankers'speeches existing employees. second, we have broadened our reach in recruiting to provide a more diverse range of applicants the opportunity to apply for positions at the federal reserve — through strengthening our connections to schools that serve diverse populations, hiring an outreach specialist for these communities, establishing a stronger presence at career fairs for diverse students, and hosting career events for students to promote jobs in economics and finance at the federal reserve. third, we are working with high schools and universities to inspire students'interest in economics and finance. we are also working to provide them with the tools they need to enter these fields. this has included partnerships with local high schools to teach economics, and with a local historically black university, howard university, to teach and mentor students in economics and statistical analysis. this last initiative has led to students developing an interest and pursuing careers in economics, including as research assistants at the federal reserve, and several are currently employed at the board as research assistants. of course, these conferences are also an important part of addressing diversity and inclusion in central banking, and the economics and finance professions. i look forward to welcoming all of you to