understand the economic and financial impact of climate - related events. for example, on friday, the federal reserve bank of san francisco will host a conference on the economics of climate change. we can also continue to follow closely and learn from the approaches taken by other central banks, including the use of scenario analysis, stress testing and supervisory expectations to encourage institutions to factor climate risk into their risk management practices. finally, we can seek to strengthen the data and modeling capabilities we need to assess climate - related risks as part of our forward - looking, data - driven supervision. given the far - reaching impact of climate risk on the structure of the economy and the financial sector, i am confident that risk managers will respond appropriately and firms will continue to build resilience to all risks. garp, for example, is exploring this and has recently surveyed its members to better understand professional needs for “ sustainability, climate risk, and esg integration. ” 4 i am interested to hear from all of you about how your institutions are developing tools and practices to integrate climate risk into your risk management frameworks. innovation and culture it is no surprise to this audience that technological innovation, big data, and advanced analytics are transforming financial services. we can debate where we are on the maturity curve and what innovations are most likely to be transformative, but the direction of travel seems clear. i expect the afternoon session on “ technology, big data, and the practice of risk management ” will address core issues such as new approaches for model risk management in a world of widespread artificial intelligence ; the inherent challenge of “ explainability ” and potential bias in algorithms ; the strategic risks from new entrants ; and the impact on human capital strategies. 2 / 4 bis central bankers'speeches i want to highlight a complementary, but different issue and focus on how firms manage these changes. more broadly, what type of corporate culture is needed to support a successful digital transformation? over the past five years, the new york fed has emphasized the importance of a healthy culture to reduce misconduct risk. in addition, i think there is likely a link between a firm ’ s culture and its ability to adapt to a changing environment, whether it is technological innovation, demographic change, new business models, or climate change. firms need a culture that allows change and is resilient to these trends. in discussions of the impact of technology on financial services, for example, one extreme view is that new fintech entrants — either smaller start - ups or big

pressures which in themselves would result in faster development of the domestic economy, as well as more positive output gap compared with the countries of the eurozone, would also lead to more pronounced interaction with the increase in unit labor costs. the perception of close coordination between the central bank and the government in dealing with this challenge would mean that both public institutions are aware of the need to adjust to the conditions that the maintenance of price stability through the exchange rate brings. this adjustment would prompt the government, through dialogue with social partners, to advocate a moderate growth of wages, i. e. wage growth which will take into account productivity in both the tradable and non - tradable sectors. this would lead to increased employment, while simultaneously improving the competitive position of enterprises, which would alleviate the emergence of imbalances in the economy as a whole. finally, i would add that we, at the national bank, have learned a lot from the mistakes that economic policy - makers have done in the past. but, as confirmed by the history of our institution, monetary independence is perhaps the decision that best helped us to contribute to the improvement of the efficiency of the economic policies, and thus improve the living standard generally, in a state - making, institutional, economic and practical way. long live this great anniversary! bis central bankers ’ speeches