zero - day exploits. supply chain attacks, like the solarwinds incident, occur when a bad actor compromises software, or software updates, before the vendor can provide it to customers for installation. while there are some mechanisms to mitigate the risk of these attacks, defenses are limited because organizations rarely control their entire software supply chain. 4 this is an example of a threat that a bank on its own may not be best equipped to address. therefore, regulators should carefully consider the appropriate entity for the focus of regulatory attention. third - party risk management customer demand for innovative and personalized products and services has increased community banks'reliance on third - party relationships to enable them to provide new 2 / 6 bis - central bankers'speeches technologies. these relationships position small banks to remain competitive and demonstrate their commitment to serving the needs of their customers and communities. at the same time, greater reliance on third parties could create additional opportunity for cyber criminals. the federal banking agencies recognize the increasing role third parties play in providing banks with a multitude of services including access to new technologies, human capital, delivery channels, products, services, and markets. in july 2021, in recognition of this trend, together the federal reserve board, the federal deposit insurance corporation, and the office of the comptroller of the currency jointly released proposed interagency guidance for the risk management of third - party relationships. although each of these federal banking agencies had already published separate third - party risk management guidance, the intent of the additional proposed guidance is to create consistency across the regulatory agencies and to consider whether further risks should be considered, given the evolving nature of the industry. 5 the banking agencies are currently in the process of considering the comments received on that proposal. a bank's use of third parties does not diminish its responsibility to oversee those activities in a safe and sound manner and in compliance with applicable laws and regulations, including consumer laws. to assist banks in their oversight of third parties in implementing risk management programs, in 2021 the federal reserve began providing state member banks with reports relevant to their third - party partners. these reports contain information that may provide helpful insight in assessing the performance of bank service providers, depending on the services used and the risk the services pose. as a former banker, i see this as a valuable resource ; having access to these supervisory reports helps to ensure that banks are receiving the information necessary to most effectively manage exposure to the risks posed by their service providers. in august 2021, the agencies also released a

organisation of the production process. hence, to go further and achieve more growth we have to improve the way our economies function. these structural policies comprise a set of reforms which involve the opening up of the goods and services markets ( it is the role of competition to eradicate in - built advantages and to direct more resources towards investments ) and helping the labour market function better to increase the employment rate. these policies are liberal, if you like, in the way they are formulated, but they enable the means to support growth and employment and they can and even must address in - built advantages which imply that the creation of wealth does not benefit the greatest number. in other words they are social in terms of the results they produce. they are especially bis central bankers ’ speeches necessary to protect the social model which forms europe ’ s identity. this model has been weakened by the crisis but we have to admit that even before the crisis it was no longer on a viable trajectory. it had been built in the 30 years following the second world war and with slowing growth it was increasingly financed by credit. isn ’ t there a danger of “ suffering first ” before we see the results of these reforms? but there has already been too much suffering and for too long – and this has been due to a lack of reform! 11. 5 % unemployment, 23. 2 % of youth unemployment in the euro area, even though these figures are now dropping – it is not and will never be a choice of society. undertaking reforms that make it possible to provide young people with the opportunities they deserve, to the 18 million unemployed in the euro area – that is alleviating this suffering. many measures of which we have just spoken have rapid effect, not forgetting that they will be supported by entrepreneurial expectation, then by employees and households when they see what the effects are. moreover the exceptionally favourable conditions on the euro area financial markets today can only be understood as the expectation of a continuation of these reforms : if this does not happen the countries of europe run the risk of an adjustment which would penalise recovery. we should look around us and see that the countries which have had to adjust – sometimes harshly given their imbalances – are now reaping the benefit of their efforts and are taking part in the euro area ’ s revival. i ’ m not just thinking of germany which is still benefiting from the reforms it made in the 2000s but also countries that bore the brunt of the crisis, like spain, which has