even at some of the larger and apparently more sophisticated firms we have been surprised by the lack of rigour and quantification in some cases. this applies bis central bankers ’ speeches to the international sector as well as the domestic one. directors of subsidiaries of international financial services firms still have important regulatory responsibilities and need to satisfy themselves as to the risk profile of the legal entity and balance sheet which is under their particular charge. risk appetite is an area where we would think boards themselves would want to set a very high standard. it is certainly an area of increasing interest on our part and where we are debating the best approach to encouraging improvements. secondly, i would encourage you as directors to provide broad, challenging scrutiny of your firms ’ culture regarding regulatory compliance and internal challenge and that you ensure you are approaching this strategically and with suitable vigour. there are a number of elements to this, but i will highlight a few and give you a very specific tip to help you. appropriately resourced and well - qualified risk management and compliance functions are an obvious starting point for a board seeking to satisfy itself in this area. but i would challenge you to think more fundamentally and strategically about the culture in the institution you oversee and to consider whether a strong approach to compliance, encouraging internal challenge, and maintaining high standards of conduct is truly embedded. this is a difficult task that merits regular reassessment by a board, with a willingness to get right to the heart of the incentives provided by the current design of a firm ’ s remuneration structure and by holding business leaders to account for poor compliance records, persistently weak audits, suppression of challenging opinions and any actions inconsistent with standards of conduct. in terms of the specific areas of supervisory interest by the central bank – and potential areas of enforcement action – my tip to you as board directors would be to read closely the central banks planned programme of thematic supervisory reviews and our announced enforcement priorities for 2013. these have been published recently and are a very transparent roadmap of our areas of particular interest in the year ahead and where regulatory transgressions are more likely than not to lead to enforcement action. they provide a very obvious checklist for boards of directors who want to stay away from any problems with their regulator. thirdly, i would encourage you as part of your board assessment process to take a hard - nosed view on board composition with a view to improving performance. our corporate governance code is designed in part to prompt this process of board renewal : adding

governance. the bank monitors adherence to the guideline through its supervisory and regulatory functions. bank supervision and regulation cannot function well if sound corporate governance is not in place. it is imperative to instil the levels of accountability and checks and balances within each bank. this principle should also be your motto in your organisation. at the bank, we engage in dialogue with our stakeholders and pursue consultative meetings with them to gauge their views, which are vital to enhance effective policy formulation and decisionmaking processes. we stand guided by the vision of our board and operate independently within the parameters of the bank of mauritius act. this notion of full impartiality also applies to our monetary policy committee, where by law, members act independently and are free to express their views in full objectivity. this is what helps the bank to seamlessly implement its core mandates to better serve the people of mauritius. our country has made significant strides over time and the world bank, in its ease of doing business report 2019, has ranked mauritius in the top 20 countries in the world for its ease of doing business and first in sub saharan africa. this recognition is testimony of the hard work of every mauritian. whilst proud of this achievement, we should continue to work for the betterment of our country and contribute to enhance our standard of living, converging to a high - income country. the world ’ s economy is fraught with uncertainties and challenges. we must put our minds together to address these challenges and move the country ahead. we need your contribution to that effect. ladies and gentlemen, the emphasis i have laid on governance underscore the sacrosanct aspect of the company secretary ’ s duty to enforce governance and compliance. we have to 2 / 3 bis central bankers'speeches compose with a fast - moving environment where kenneth blanchard ’ s once revolutionary management concepts of one minute goals, one minute praisings and one minute reprimands no longer seem to respond to today ’ s business imperatives. dear young graduates, you have built your success on hard work, on hopes and efforts borne by your parents and your loved ones and your own aspirations of being the best in your league. may i congratulate you once again and wish you the very best. may you always discharge your responsibilities in a most exemplary manner. never forget that your prime duty is to protect the integrity and repute of your country. i thank you for your attention. 3 / 3 bis central bankers'speeches