and managed effectively, according to the stages of development of the domestic financial system, the inherent risks and the strength of the social safety net as well as the tolerance level of the financial system. successful implementation of this process, including evaluation of the trade - offs involved, will at the same time enable the emerging economies to achieve the overall national objectives. it must be emphasised that the tolerance level for the system as a whole will only be as strong as the strength of its components. having robust financial institutions that are able to withstand any potential shocks and that have the agility and adaptability to embrace the future challenges are key to ensuring long - term sustainability and survival in the competitive future as well as the maintenance of financial stability. one of the most important aspects in enhancing the tolerance level involves building the capacity and institutional development. wide - ranging strategies have included consolidation, reengineering of business processes and reassessment of business models to fit the new financial landscape. leveraging on advancements in information and communication technology is important to improve business automation and efficiency levels. to achieve a higher level of operational efficiency, rationalisation of business networks and outsourcing are gaining greater significance. the journey is however never - ending, to adapt to the changing needs of the market, and at the same time, taking into account all the potential risks. the need to enhance the capacity at the firm level is not limited to improving the way business is conducted and the level of efficiency in doing business. the financial institution, as a service provider, relies heavily on human intellectual capital which contributes to the innovativeness and competitiveness of the institution. thus, human capital has been constantly sharpened through continuous development programmes and challenged to maximise its full potential. towards this end, bank negara malaysia has established the international centre for leadership in finance to provide an avenue for the development of industry leaders especially in this region. in the wake of the growth in the volume and complexity of financial transactions, and worldwide integration of financial markets, risk management has increasingly become a key concern. sound risk management practices will minimise adverse consequences faced by financial institutions during periods of uncertainty. effective risk management systems facilitate the measurement and management of risk exposures, thus minimising potential future losses. in addition, robust internal controls which are designed to provide qualitative standards are also necessary to complement the quantitative analysis of risk and provide a check and balance in the overall risk management practices. the malaysian experience let me now take the opportunity to share with

encik adnan zaylani mohamad zahid : prevention of corruption in project management opening remarks by mr encik adnan zaylani mohamad zahid, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the malaysian anti - corruption commission ( macc ) talk entitled " prevention of corruption in project management ", kuala lumpur, 3 april 2017. * * * it is my great honour and pleasure to welcome officers from the malaysian anti - corruption commission ( macc ), particularly the speaker for today, assistant commissioner mr mohan munusamy. a warm welcome is also extended to the project teams comprising the steering committees, contractors and consultants. my appreciation also goes to all my fellow bank staff who are here today. in more recent times, the bank and macc have collaborated on a number of fronts. the recent strategic cooperation between the bank and macc, together with lhdn to combat financial crime, particularly corruption, signifies our commitment to work together in this area. from the bank ’ s perspective, this demonstrates our effort to instil integrity for and beyond our regulatees in the financial market. integrity is taken very seriously at the bank where we continually and consciously maintain the highest standards, given that we enforce these standards on our regulatees in our supervisory capacity. we proactively manage integrity hazards and corruption risks and tackle those risks pre - emptively. corruption is not simply a crime on its own. its consequences can be far - reaching in terms of economic losses and irreparable reputation damage. thus, we must actively keep abreast of the management of integrity risks. as an institution, we have been blessed to have had pioneers who upheld the highest standards of excellence in our corporate conduct. the late tun ismail ali, the first malaysian governor from 1962 to 1980 was well known as a person of the highest integrity. i can recall his younger brother relating an episode in this regard. an aspiring architect at that time, he was told by the late tun ismail, not to ever set foot in the bank while he was the governor. uncompromising and unyielding, we certainly should strive to assimilate tun ’ s values and standards. indeed, we are fortunate that his successors have continued his trademark standard of integrity, to the extent that it is deeply ingrained in our corporate dna today. the bank does not tolerate any wrongdoing which may tarnish its reputation, given that our solid