management programs. later this afternoon, you will hear more on this from our panel of it examiners on these resources, recent observations from the field, and risks associated with ai. ransomware attacks continue to target individuals, businesses, and governments across the country and often result in significant financial and operational harm. combating ransomware requires that an organization make investments in people, 1 / 2 bis - central bankers'speeches processes, and technology. often, these attacks are successful because wellintentioned staff have their guard down, or they are not effectively trained to identify and respond to a potential incident. employees can be your greatest strength, but also your weakest link when it comes to protecting digital assets. that's why it is critical that cyberprograms are built upon a solid foundation that includes training staff to quickly respond to suspicious activity. this reinforces the importance of a skeptical approach in helping to safeguard information. today and tomorrow, federal reserve staff, law enforcement, and industry stakeholders will share their perspectives on ransomware incidents, including restoration of key payments - related functions, cyberinsurance, payments - related risks, and financial considerations during an incident. finally, a cybersecurity program would not be complete without a comprehensive testing and exercise plan. by incorporating regular testing, a bank can identify strengths and weaknesses in their current strategies. they can then leverage this information to enhance resiliency, resulting in a higher level of preparedness when an incident occurs. tabletop exercises like the one facilitated tomorrow with ibm are an excellent way to test a cyberdefense strategy against multiple scenarios, including those involving a third party and payment systems. in closing, outreach events like this workshop, the february 2024 ask the feda® session with the cybersecurity and infrastructure security agency, and our recent virtual " office hours " on the 2023 third - party risk management guidance enable us to connect and share resources. these opportunities help us to better support industry management of cybersecurity and other operational risks. i would like to thank the federal reserve banks of chicago, kansas city, and st. louis for organizing this event, and i hope you enjoy the workshop. 1 the views expressed here are my own and are not necessarily those of my colleagues on the federal reserve board or the federal open market committee. 2 / 2 bis - central bankers'speeches

represents an important effort to help developing countries train their supervisory staff. the need for international cooperation extends beyond banking systems and bank supervisors, however, and must embrace the full range of regulated activities that large, complex financial institutions conduct. toward that end, authorities from around the world have established the joint forum, made up of representatives of agencies regulating banking, insurance, and securities activities. the financial stability forum, established by the g7 in 1999, is another effort to promote international financial stability through information exchange and cooperation in financial supervision. the forum regularly brings together national authorities responsible for financial stability in significant international financial centers - including both securities and banking supervisors international financial institutions, and representatives of international groups of supervisors and regulators. other groups exist and will, necessarily, be created to address issues of specific interest and may have short or long lives. the point is, it is important that we communicate and coordinate our activities, so that we understand each other ’ s responsibilities and oversight techniques. as international problems emerge - as they will - knowing our counterparts abroad and trusting their judgment could be essential to resolving problems in a timely and orderly way. conclusion the challenge of supervising global financial institutions is the challenge of the decade for supervisors. large banking organizations are likely to become increasingly complicated and wideranging, and the banking supervisory agencies will have to adjust to that. in my view, the adjustment will require increasing reliance on banks ’ own internal risk management, and especially on internal risk classification systems ; on regulatory capital linked to internal risk classifications ; on supervision that focuses on evaluation of, and supervisory feedback on, risk - management systems ; on market discipline ; and on increased cooperation among agencies. none of these steps will be easy. the good news is that we ’ ve started on all of these efforts, and that progress has already been made.