management programs. later this afternoon, you will hear more on this from our panel of it examiners on these resources, recent observations from the field, and risks associated with ai. ransomware attacks continue to target individuals, businesses, and governments across the country and often result in significant financial and operational harm. combating ransomware requires that an organization make investments in people, 1 / 2 bis - central bankers'speeches processes, and technology. often, these attacks are successful because wellintentioned staff have their guard down, or they are not effectively trained to identify and respond to a potential incident. employees can be your greatest strength, but also your weakest link when it comes to protecting digital assets. that's why it is critical that cyberprograms are built upon a solid foundation that includes training staff to quickly respond to suspicious activity. this reinforces the importance of a skeptical approach in helping to safeguard information. today and tomorrow, federal reserve staff, law enforcement, and industry stakeholders will share their perspectives on ransomware incidents, including restoration of key payments - related functions, cyberinsurance, payments - related risks, and financial considerations during an incident. finally, a cybersecurity program would not be complete without a comprehensive testing and exercise plan. by incorporating regular testing, a bank can identify strengths and weaknesses in their current strategies. they can then leverage this information to enhance resiliency, resulting in a higher level of preparedness when an incident occurs. tabletop exercises like the one facilitated tomorrow with ibm are an excellent way to test a cyberdefense strategy against multiple scenarios, including those involving a third party and payment systems. in closing, outreach events like this workshop, the february 2024 ask the feda® session with the cybersecurity and infrastructure security agency, and our recent virtual " office hours " on the 2023 third - party risk management guidance enable us to connect and share resources. these opportunities help us to better support industry management of cybersecurity and other operational risks. i would like to thank the federal reserve banks of chicago, kansas city, and st. louis for organizing this event, and i hope you enjoy the workshop. 1 the views expressed here are my own and are not necessarily those of my colleagues on the federal reserve board or the federal open market committee. 2 / 2 bis - central bankers'speeches

matthew elderfield : single supervisory mechanism – benefits and challenges from a practical supervisory perspective introductory remarks by mr matthew elderfield, deputy governor of the central bank of ireland, at the 11th annual european financial services conference “ reshaping europe ’ s financial markets ”, organised by forum europe ltd., brussels, 31 january 2013. * * * my thanks to the organisers for the opportunity to take part in this panel. there are a number of interesting issues presented by the banking union to discuss. the starting point, as we know, has been the desire to break the destructive link between stressed sovereign finances and weak banking systems. europe is taking measures to establish the single supervisory mechanism, but i think an important issue to discuss today is the timetable and sequencing for the other essential elements of banking union. establishing operational parameters for the use of the esm for direct recapitalisation and agreeing a framework and set of national powers for resolution are urgently needed measures to make banking union a success and to resolve the financial crisis. i would argue that these need to be implemented in parallel to preparing for the operation of the ssm, with work on a european - level resolution authority to follow shortly and then european deposit guarantee arrangements to be explored at a later stage. but as the only supervisor on the panel, let me say a few introductory words about the benefits and challenges of the ssm from a practical supervisory perspective. to my mind, banking union holds out the prospect of strengthening the framework for european banking supervision, if implemented successfully. creating some distance between supervisors and the banks they regulate ( and, indeed, from the political systems of the banks they regulate ) can help improve the capacity for challenge and ensure a broader, more detached, perspective on problems. as an englishman working in ireland, i need to disclose that bringing in a foreigner to do your supervision is not, alas, the magic solution to all the woes of a banking system. but the single supervisory mechanism holds open the prospect of an institutional framework, a broader skill set and more diversity of experience that should help insulate supervisors from the pressures – subtle and direct, cultural and political – that come from long - time and close proximity to their regulatory charges and their champions. however, there are some important practical implementation challenges that flow from this new structure. let me briefly mention three of them. firstly, the fact that there will necessarily and correctly be a division of labour between national supervisory authorities and central ssm staff at the ecb raises practical questions