even more challenging. of course, we cannot talk about digital transformation and it environments without mentioning data quality. reliable data is the starting point for properly quantifying, identifying and monitoring any risk, to ensure that potential weaknesses can be identified in a timely manner and that any necessary measures can be coordinated. climate and environmental risks are another area that supervisors have identified as a source of risk in the medium term, which should be closely monitored in order to properly understand and recognise these risks. overall, both esg and regulatory compliance are becoming more relevant due to their high reputational impact, and banks need to pay close attention to them. internal control functions another issue i would like to highlight is the key role of internal control functions in the smooth functioning of institutions, complementing the role of the first line of defence. the board of directors must have full and direct access to the heads of the internal control functions ( risk management function, compliance function and internal audit ). in other words, the interaction between the board of directors and the heads of the internal control functions should not have to go through an intermediary level of executive management. reporting to the board should be supported by agile internal systems capable of producing reliable information to facilitate meaningful discussion and effective decision - making processes. overall, the internal audit and risk management functions are more mature in their functioning than the compliance function, whose role has changed / increased in recent years. there is therefore more room for improvement in the compliance function. the main focus areas identified by the ssm related to internal control functions are : ( i ) the board ’ s challenging capacity and ownership in addressing deficiencies. ( ii ) in most ssm institutions, the heads of the internal control function have direct access and report any concerns directly to the board of directors, in line with the eba guidelines on internal governance. however, the frequency and level of detail of the information provided is also a focus area. ( iii ) the right balance between sufficient involvement and independence. ( iv ) the stature of the control functions, with the internal audit function performing better and the compliance function worse or even inadequately. ( v ) the central steering and oversight of the control functions of group subsidiaries. ( vi ) there has been a slight increase in the staffing of control functions ( especially compliance ), but there are still shortages of qualified staff in some specialised areas ( e. g. cyber, digitalisation, internal models ). ( vii ) the scope covered by compliance is often not comprehensive

oil shock & secondary bank crisis nov - dec 1974 2. chinese electricity production september - 20 jan 01 - 60 - 40 - 20 percent change jan 03 jan 05 4. japanese industrial production percentage change on a year earlier september 2008 percentage change on a month earlier - 2 - 4 - 10 - 6 september - 30 jan 07 jul 07 jan 08 jul 08 jan 01 5. german export values september jan 03 jan 05 jan 03 jan 05 - 8 - 10 jan 07 6. us non - farm payrolls percentage change on a month earlier jan 01 - 20 jul 06 jan 07 3. brazilian car sales jan 06 - 10 jan 07 two monthly change, thousands - 4 - 500 - 8 september - 12 jan 01 jan 03 jan 05 jan 07 - 1000 - 1500 7. uk manufacturing output 8. baltic dry index ( monthly averages ) percentage change, latest three months on previous three months percentage change on a month earlier - 1 - 20 - 2 september jan 01 jan 03 jan 05 - 40 september - 3 - 4 jan 07 jan 01 jan 03 jan 05 jan 07 - 60 - 80 jan 09 9. consensus forecast for world growth forecast for 2009 calendar year growth september 2008 jan - 08 m ar - 08 m ay - 08 jul - 08 sep - 08 5. 0 4. 5 4. 0 3. 5 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 - 0. 5 - 1. 0 nov - 08 survey dates