will enrich our knowledge on the subject. we will also benefit from the richness of the exchange of information between institutions, which i hope will show us the road to the future of risk management. i wish you very fruitful sessions today and tomorrow, which will encourage learning, generate more conversations over time and development collaborative work that will provide continuity to the topics that will be covered in these two days. thank you very much. 3 / 3 bis - central bankers'speeches

to the fruitful experiences of the previous ones. this meeting will open with a general framework of central banks'financial management, and will then address key risk - management considerations when designing and managing a strategic asset allocation model. the focus will be on ( i ) how central banks define their objectives, constraints and risk tolerance criteria when managing a strategic asset allocation framework, ( ii ) how portfolio optimization methods 2 / 3 bis - central bankers'speeches can incorporate risk management considerations, and ( iii ) what are the guiding rules and organizational aspects of such strategic asset allocation within the risk management framework. because of the additional stress that central bank balance sheets have undergone, in terms of the size and the number and magnitude of new risk factors that must be managed, as i have already mentioned, there is a need to revisit the tools we have used to assess the resilience of our portfolios. to this end, a session will be held to discuss the design of stress tests for balance sheets and how this tool helps institutions to articulate risk tolerance and to assess the capacity of portfolios to deal with different negative scenarios, ensuring that banks maintain the capacity to manage policy measures if necessary. we will also be discussing risk governance, as it is essential to have a solid structure that clearly defines roles and responsibilities. since the risk management governance structure may differ from one country to another, we want to learn about the construction and implementation of the models, the institutional arrangements within the organization that allow the dissemination of financial risk management objectives and the role played by the lines of communication with the bank authorities in order to specify guidelines and directives to address this issue. finally, issues related to sustainability and climate change have been incorporated into the balance sheet risk management framework of some central banks. we therefore want to review and understand how central banks'risk is affected by climate change through channels that include the credit risk of their own assets and through their impact on the real economy. to conclude, i would like to thank cemla, the co - organizing central banks for putting together this meeting and the team at the central bank of chile for their work and for arranging the logistics of this event. currently, when we are living under very uncertain circumstances, it is especially relevant to be discussing risk issues. this is so because high uncertainty affects the evaluation process when making decisions, when assigning probabilities to certain events and, finally, how our institutions are governed and managed. there is no doubt in my mind that this meeting