##lif. the fide programme has become a standard bearer for exceptional directors ’ education with its deep dive into the nuts and bolts of practical governance, its link to supervisory expectations, and a delivery approach that effectively combines the use of exceptional faculty and the rich experience, knowledge and insights of the participants. to date, more than 600 directors from financial institutions, including directors from the regional offices of both foreign and domestic financial institutions, have attended the fide programme. this has had a visible impact that in bringing about important positive changes in how boards function and interact with senior management. both fide forum and iclif are uniquely positioned to advance corporate governance in the financial sector. after all, they bring together those who represent the ultimate governing body of financial institutions, with great responsibilities and accountability. such an opportunity must be capitalised and not wasted. fide forum and iclif should therefore complement each other and avoid duplication. there are significant benefits to be gained from an effective partnership where resources can be channelled to increase the collective impact of programmes and initiatives by the two organisations. in my own engagements with the industry, over the years, coordination and cooperation among financial institutions can become game changers for the industry. in this respect, we should fully appreciate the distinctive purpose of iclif and the fide forum and how they coordinate with each other within the space of directors ’ development. with close coordination and cooperation we can avoid the redundancies and wastage and realise the synergistic benefits from the alliance between the two organisation. being a director of a financial institution will demand a lot from the individual. it is a position of trust where integrity is the norm. it should be, given the critical role of financial institutions in any economy. bis central bankers ’ speeches as a network of financial institution directors, fide forum provides a valuable resource for directors as they navigate the heavy responsibilities that come with the position. fide forum should continuously raise the bar on director performance by advocating best practices and providing support to its members in helping solve real problems confronting boards today. it should be a respected voice on important issues of corporate governance, an epitome of best practices of corporate malaysia. most importantly, it should build an enduring legacy for future leaders of financial institutions by representing within its collective membership the highest standards of integrity, professional conduct and intellectual integrity. indeed, fide forum ’ s success must surely be measured not only by how well it serves its current membership, but also by how it expands its reach and influence to attract

are : technological solutions that reduce back office costs ; more efficient loan processing ; and an improved customer experience through smartphone applications and other mobile technology. this proactive perspective leverages innovation as a strategic differentiator and competitive advantage, rather than just a means to enhance efficiency. the speed and magnitude of these changes also have implications for us as supervisors. we must keep pace and understand the risks associated with innovation so that we can appropriately focus our supervisory efforts on new operational, compliance, and reputational risks. for example, supervisory and regulatory letter 13 – 19, “ guidance on managing outsourcing risk, ” provides supervisory expectations on partnering with outside vendors. while supervisors can provide some focus on emerging risks, it is ultimately the responsibility of each firm and its board to identify the relevant risks associated with new technologies and make appropriate and prudent business decisions for their institutions and customers. cybersecurity the potential benefits associated with these new technologies are accompanied by the risks posed by cybersecurity. cybersecurity risks, the third topic on my list, continue to raise challenges for all types of firms in the financial system, ranging from supervised banks to financial utilities to non - bank financial firms to government agencies. while these entities differ in size, purpose, and mission, the common threats associated with cybersecurity represent a universal concern. indeed, in my regular meetings with supervisory colleagues and supervised institutions, cybersecurity is almost always at the top of the risk list. frequently cited challenges by local institutions include : attracting and retaining information technology talent, as these skilled individuals are in high demand and implementing a sufficiently robust vendor management program for technology services outsourced to third - party providers. while we expect firms to adequately manage a number of financial and operational risks such as credit risk, market risk, and operational risk, the nature of the cybersecurity risk differs in one key aspect – motivation. a cybersecurity attacker might be a nation - state or hacker with the intention to disrupt or damage a critical infrastructure sustaining the u. s. and global economy. or, the attack may be financial in nature, where the perpetrator is engaging in fraud and seeking to profit. these motivations suggest that the cyber threat is more intentional than other risks. this intentionality coupled with the resources of some perpetrators raises the stakes significantly and makes cyber defense much more difficult. we recognize that addressing the cyber threat is a complicated and expensive undertaking, but it is an essential one. all