focus more on the big questions and risks to the outlook and monetary policy. we are actively encouraging a greater range of diverse perspectives and challenge to make sure we are turning over every stone ; a summary of those different ways of viewing the economy is provided in the board papers at each meeting. also, external board members now meet regularly with a wider range of staff to discuss topics relevant to their decision - making. this is just one way in which we are bringing to life our cultural vision for being open to ideas and dynamic in how we work. the briefings that board members receive now regularly include policy alternatives, scenarios, and discussion of the trade - offs between the rba ’ s objectives of low and stable inflation and full employment. we have drawn inspiration from peer central banks to enhance our practices, and they will continue to evolve as we learn what works well here and how we can do even better. the rba has always produced high - quality analysis and our staff are well respected for their expertise. but challenging questions lay ahead, and we are best placed to tackle them by continually reflecting on how we can do things differently and what we can learn from others. in this spirit, we are broadening – and deepening – our capabilities, our models and our engagement with people, ideas, and organisations outside of the rba. r e s e r v e b a n k o f au s t r a l i a one example of this is our new monetary policy strategy team, tasked with deepening our policy analysis by encouraging debate and collaboration, and harnessing know - how, from within and outside the rba. you will also have noticed changes in how we communicate. i have held media conferences after each of the board ’ s decisions this year, and these will continue next year. our publications are evolving too. the statement on monetary policy, which we publish four times a year, has been restyled to be more transparent about our forecasts and assumptions, and to give clearer explanations for our assessment of the economy and the risks around the baseline outlook. the financial stability review has also undergone a change, with a greater focus on clearer messages to explain our analysis. we will continue to develop these publications as we enhance our communications strategy. our transformation agenda our transformation goes beyond reshaping how we set monetary policy. in april last year, we launched a four - year transformation program based on the rba review findings. we set out to become a more open and dynamic central

glenn stevens : the role of internal audit in financial services firms opening remarks by mr glenn stevens, governor of the reserve bank of australia, to the institute of internal auditors financial services forum, sydney, 17 november 2011. * * * i am pleased to be with you this morning to open this financial services forum focusing on the role of internal audit in financial services firms. the reserve bank ’ s audit department has a long association with the iia and we are strong supporters of the work of the institute. the fact that you are holding this forum is significant. as all of you know only too well, there have been many practices exposed in global financial institutions over the past few years that show poor risk management and failure of controls over lending and trading activities. the fact that these issues continue to surface is a clear indication that the subject matter of today ’ s forum remains relevant. from my own experience at the reserve bank over many years, i have gained an appreciation of the important role that internal audit can play in our financial institutions. the reserve bank is, of course, very much a bank. we have a substantial balance sheet that requires management, we provide a range of banking services to government clients, we operate key pieces of financial infrastructure, and we rely heavily on our it systems to deliver these services. over the years, we have worked to develop a detailed risk management framework to identify where the key risks lie, and set out how they are to be managed. yet even though much work has gone into developing that framework, like any risk - management approach, it can only ever be a work in progress – and it remains under continual review. complementing the risk framework, our internal audit program focuses its attention on the most important risks identified by management. like many auditors today, our audit department takes a broad view of their responsibilities, reviewing not only the effectiveness of controls but also whether they are the most efficient way to achieve an end. i know that they are conscious that procedures they may have recommended some years ago may no longer be appropriate, given the changes in technology. and of course technology continues to challenge both our systems operators and our auditors, as the threats to the security of our data and communications increase. audit department ’ s work is overseen by the board ’ s audit committee, which has among its members two of the bank ’ s independent directors, one of whom ( jillian broadbent ) is chair, and which also brings external expertise to bear on assessing the overall audit work