time to their roles and have the relevant experience to question management and form independent views on strategy, risk, and performance. 17. this is particularly relevant in the area of risk management. boards have an important role to play in determining the company ’ s risk tolerance and risk policies. they must oversee management in designing, implementing, and monitoring the company ’ s systems for managing risk. 18. but risk is fundamentally about uncertainty and is therefore inherently subjective. this is why a diverse board – with both executive and independent directors as well as a variety of backgrounds and expertise – is key. given the complexity of the environment we operate in, only through robust debate and rigorous consideration of the range of possibilities can boards make sound decisions on risk and strategy. 19. putting together diverse boards with competent directors, and at the same time meeting the tighter requirements for independence, is a real challenge – especially for a small country like singapore with a limited talent pool. the solution does not lie in lowering our standards for either independence or competence. companies must take a more proactive approach in identifying and making available training to their directors. one possible way to increase the pool of directors would be for more singapore companies to be open to having their senior staff sit on the boards of other companies, as a way to further develop their promising executives. 20. there are some promising initiatives underway. the singapore institute of directors ( sid ) and the stewardship and corporate governance centre ( scgc ) have been working to help increase the pool of directors through a variety of training programmes. for example : • the sid - smu directorship programme provides basic, broad - based knowledge essential for performing as board directors. • scgc, set up by temasek, is developing a training programme designed specifically for potential and newly appointed directors. 21. but more work needs to be done in the area of competency building. let me offer one possibility. there may be scope to build a cadre of full - time professional directors in singapore. the concept of a professional director – as a person “ who spends all his time in bis central bankers ’ speeches the discharge of his responsibilities as a director of various publicly held corporations ” 1 – is not new. in some jurisdictions, professional associations have introduced accreditation frameworks for directors, such as the “ chartered director ” in uk and the “ accredited director ” in new zealand. this could be worth considering. instilling the right values 22. finally, corporate governance must be about instilling a

). 25. panetta, f. ( 2022 ), “ mind the step : calibrating monetary policy in a volatile environment ”, op. cit. 26. the first of these is a measured approach to interest rate increases and balance sheet normalisation. the second is the flexibility embedded in our reinvestments under the pandemic emergency purchase programme. the third is the transmission protection instrument. 27. the frequency of seven - day us dollar operations has been increased from weekly to daily. see ecb ( 2023 ), “ coordinated central bank action to enhance the provision of us dollar liquidity ”, 19 march. 28. panetta, f. ( 2021 ), “ monetary autonomy in a globalised world ”, op. cit. 29. in the past, when concerns about having reached the lower bound were dominating discussions, forward guidance helped insulate the euro area from financial spillovers. but forward guidance is not suited to the current environment. see panetta, f. ( 2023 ), “ monetary policy after the energy shock ”, op. cit. 30. ecb ( 2023 ), “ monetary policy statement ”, 16 march. 31. panetta, f. ( 2023 ), “ monetary policy after the energy shock ”, op. cit. reproduction is permitted provided that the source is acknowledged. media contacts