itshkhoki, o., and konings, j. ( 2018 ). “ international shocks, variable markups and do mestic prices “. the review o f eco no mic studies, february, 2019. all in all, the main conclusion from current research is that, overall, the development of globalisation over the past few decades has led to disinflationary pressures in advanced economies, including the euro area. it has also increased the transmission of foreign shocks and contributed to a lower sensitivity of inflation to domestic factors. however, these effects are found to be quantitatively small. looking ahead should we expect symmetric effects from a deglobalisation process? i will argue that there are several reasons that prevent us from assuming that this process is going to be symmetric to the globalisation phase. first, it appears that for the time being there is no consistent trend towards “ deglobalisation ”, but rather a change in the nature of globalisation, leading to a rise in the regionalisation of trade and supply chains, a diversification of sourcing and a certain slowdown in global value chain fragmentation. 22 while the marked slowdown in firms ’ decisions to relocate part of their production processes abroad ( “ offshoring ” ) or to repatriate previously offshored activities ( “ reshoring ” ) is compatible with a deglobalisation phase, other factors qualify this view. the flattening of trade in goods does indeed hint at a trend slowdown, but the continued growth of international trade in services seems to signal a continuation of globalisation trends in these sectors, driven by technological progress, including data trading and the expansion of artificial intelligence. second, the impact of these new trends – as opposed to purely globalisation or deglobalisation trends – are far from obvious. as an illustration, while offshoring is usually related to job displacement, several recent studies highlight that it is also related to the upgrading of jobs, towards more competitive and innovative varieties, and to changes in employment composition in favour of high - skilled workers. 23 third, the globalisation process lasted for several decades. the current location decisions and choice of providers are the result of long - run economic forces, which might work differently in a deglobalisation phase, especially if this is more abrupt and takes place in a short period of time, which could lead to non - linear effects on growth, inflation or monetary policy transmission. four,

identifying and assessing the key risks within an organization and determining the appropriate response to those risks. companies should determine the level of risk they are willing to accept given the return they can achieve. management then must implement effective processes to limit risk to the acceptable level. once these steps have been taken, business line managers are expected to monitor actual risk levels and test the effectiveness of the risk responses. several elements are essential to the successful implementation of enterprisewide risk management. one is clearly articulated risk - management goals which provide a foundation for the enterprisewide risk management program and for related training and communication. a second is a common risk language which is critical because it enables individuals throughout the organization to conduct meaningful cross - functional discussions about risk. a third element essential to the implementation of successful enterprisewide risk management is that individuals clearly understand their roles in the risk - assessment and risk - management framework. in today's environment, all organizations should consider embracing this discipline. indeed, the federal reserve is currently considering how enterprisewide risk management can better be integrated into its management processes. tone at the top it is also important that a strong culture of compliance be established at the top of the organization and that a proper ethical tone be set for governing the conduct of business. in many instances, senior management must move from thinking about compliance as chiefly a cost center to considering the benefits of compliance in protecting against legal and reputational risks that can have an impact on the bottom line. the board and senior management are obligated to deliver a strong message to others in the firm about the importance of integrity, compliance with the law, fair treatment of customers, and overall good business ethics. leaders should demonstrate their commitment through their individual conduct and their response to control failures. while the ethical tone of a financial institution comes from the top, a successful ethics program must be demonstrated by staff at all levels and throughout the organization. the environment should empower any employee to elevate ethical or reputational concerns to appropriate levels of management without fear of retribution. in other words, the culture of the organization should raise issues to senior management that they may not be aware of ; management can then demonstrate their commitment by responding appropriately. role of internal audit this leads me to the importance of the role of the internal audit function within an organization. the federal reserve is very supportive of an independent audit function at financial services companies. as indicated in our amended interagency policy statement released last year, the audit committee a copy of the draft can be obtained at the