a challenge not only to emerging economies but also to the more developed financial systems and economies. lessons from the financial crisis while there are benefits to be gained from the internationalization of financial systems, the risks to financial stability have also increased immensely. the risks generally emanate from the greater prospects for contagion following the greater degree of interdependence. these risks would be even more pronounced in emerging economies in which financial systems have yet to become more developed and matured. to be better positioned to reap the benefits from internationalization of financial systems in emerging economies, the crisis provides us with several lessons. firstly, is to recognize that the different parts of the domestic financial system is highly interconnected. this also includes those parts that may not be under the regulatory capture. financial stress in a specific segment may no longer be confined to that segment but may rapidly be transmitted to the rest of the financial system. thus, a piecemeal policy response would not be sufficient. it would require a comprehensive response to ensure that such stressed conditions does not evolve into a major financial crisis. secondly, the build - up of risks to financial stability need to be identified early. pre - emptive action would reduce the cost of the crisis on the financial system and the economy. third, the regulatory authorities need to be accorded the necessary powers to manage the risks to financial stability. fourth, the optimal policy mix may not only include policy actions to address immediate term issues but would also need to simultaneously address the underlying structural problems. fifth, is to give recognition to the importance of enabling conditions that will render the implemented policies to yield the desired outcomes. finally, to facilitate effective policy decision making there needs to be a platform and governance process for policy coordination across agencies within an economy and for this to be extended for regional and international collective action. following the recent global financial crisis, the policy response at the national level has been extensive and on an unprecedented scale. while there has been wide ranging financial reforms at the international level to strengthen the resilience of the financial sector, the cross bis central bankers ’ speeches border dimension of policy - making has not been as extensive. this is despite the swift spread of financial and economic shocks throughout the global economy and international financial system following the eruption of the financial crisis in 2008. despite these increased challenges, the institutional arrangements for policy cooperation and coordination have yet to reach the levels that are commensurate with the degree of global economic and financial integration. while the individual efforts

transformation of human resource strategies. given that in this new environment human capital has become a key factor that will drive results, it is therefore not only the investment in talent that has become key, but also their management. human capital management therefore needs to be a top priority in organisations. certainly this is the case for financial institutions for which the demands and expectations are high. new approaches and strategies for human capital management will be required. these strategies need to be aligned with the strategic objectives of the organisation. a vital part of this is the capacity building of the human capital management team itself to ensure that they will best serve their organisation. there also has to be strong engagement between the leadership and the human capital management team. there has to be an acute awareness of how the forces of change and the new environment is reshaping the demand and supply of talent and how the existing talent needs to be transformed to meet the objectives of the organisation in a highly dynamic environment. human capital management is no longer about the efficient delivery of support services. it is now about the management of talent in the organisation to strengthen and enhance its performance. the human capital management also needs to be well supported by an integrated information system that can allow for rigorous analysis that can become an important basis for decision making. finally, there need to be continuous socialisation of the human capital reforms to ensure the effective implementation of the difficult reforms and changes in the organisation. conclusion let me conclude my remarks. as we advance forward into the future, the economic and financial landscape can be expected to be continuously redefined. if we are to stay ahead of the curve and be well positioned to meet the new challenges, high priority needs to be given to talent development and management. education and capacity building to generate the new talent with the right skills, mindsets and values is only one part of the solution. new bis central bankers ’ speeches strategies and approaches for the effective human capital management is an equally important part of the equation. many of these issues are likely to be discussed at this symposium. let me thank the speakers, especially those who have travelled here from a far for their contribution to this symposium. let me take the opportunity to wish you an engaging and productive symposium. bis central bankers ’ speeches