planned transition, 26 in line with the conclusions of the 2022 climate risk stress tests and other analyses undertaken by the ngfs. before i conclude, i wish to underline the importance of global cooperation. the fact that the eu is currently leading the global debate on sustainable finance is positive, but we need to consider that climate change requires a global effort and that many other institutions, such as the bcbs and the fsb, are also highly committed in their respective areas of competence. as the bis recently indicated, 27 the existence of ever more complex supply chains, with international connections, makes coordination essential, to ensure that firms ’ most polluting activities are not transferred to jurisdictions with more lax environmental regulations. global warming and environmental degradation are global problems and must, therefore, be tackled in a global and coordinated manner. we are now aware of the importance of these issues and i am fortunate enough to have witnessed first - hand the work being done in all areas – governmental, regulatory and social – to mitigate this problem and build a more just and sustainable society. because, as the scientists remind us, there is no time to lose. in line with the conclusions drawn by other bodies such as the ngfs which show that the impacts in terms of gdp of taking no action or acting too late would be more negative than following the net zero emissions by 2050 policy. ngfs _ climate _ scenarios _ for _ central _ banks _ and _ supervisors _. pdf. pdf https : / / www. bis. org / publ / bppdf / bispap132. pdf

jaime caruana : risk management trends and the supervisory structure remarks of mr jaime caruana, governor of the bank of spain and chairman of the basel committee on banking supervision, at the 31st general assembly of the geneva association, madrid, 27 - 29 may 2004. * i. * * introduction and overview i would like to thank mr de castries, mr liedtke, and the members of the geneva association for inviting me to participate in your 31st general assembly. as the chairman of the basel committee on banking supervision, i am honoured to address another organisation that names itself after a distinguished city in switzerland. it is a special privilege for me to do so here in madrid, not far from the bank of spain. our organisations may hail from different swiss cities and different sectors of the financial services industry, yet both organisations monitor trends in risk management and work to encourage advances in that discipline. this is a difficult but enormously important duty for all of us. financial organisations whether they are insurance companies, securities firms, or banks - compete on their knowledge of their customers. they seek to tailor products and services to each customer ’ s ever changing needs. to succeed in an environment where products and services must evolve quickly, financial service providers must understand thoroughly the benefits, costs and risks of their current activities, while watching the horizon carefully for future changes that might alter the balance between risks and rewards. supervisors, for our part, must ensure that the regulatory system encourages banks, securities firms, and insurance companies to be capable of managing their risks today and ready to respond to new challenges tomorrow. risk management and the supervisory system cannot and should not evolve independently of each other. on the contrary, supervisory agencies and financial services providers are currently working in tandem to develop a “ virtuous circle ” in risk management and supervision. together, we want to ensure that supervision reflects the best practices being developed by the industry, while at the same encouraging institutions to improve those practices constantly. this morning, i would like to share a financial supervisor ’ s perspective with you on the “ virtuous circle ” that is emerging to encompass risk management and supervision. i ’ ll begin my remarks with the results of a study that outlines the great advances achieved by leading financial institutions around the world in developing more rigorous and comprehensive risk management approaches. at the same time that commercial organisations made improvements to their internal processes, supervisors have sought to incorporate those improvements into the supervisory structure, which is my second topic. we are moving toward a more