recently accessed on 8 february 2016 ] at : http : / / usa. marsh. com / portals / 9 / documents / benchmarkingtrendscyber8094. pdf. bis central bankers ’ speeches customers, yet at the same time the additional layer of security imposes a higher hurdle for cyber criminals to clear authentication. third, defending from cyber risks is by no means trivial, but requires a considerable degree of foresight and ingenuity. threats are constantly evolving. in order to control and mitigate cyber risk, banks are even starting to use big data to discover unusual patterns that point to a cyber attack. from a governance point of view, setting the right priorities can make a huge difference. we have seen cases in which banks expend a lot of resources on deterring sophisticated assaults while omitting the most basic of measures. i am especially referring to a factor which is still highly underappreciated : the human factor. for humans are often the weakest link in it processes. targeting “ digital carelessness ” among customers and staff is usually a good way to achieve fast results in mitigating risk. 4. how to cope with cyber risks these insights have been incorporated into regulatory and supervisory practice. unsurprisingly, regulation cannot give a detailed prescription for cyber security, because the cyber environment is so agile that technical details can quickly become obsolete. in addition, there is no one - size - fits - all solution that can cover the diversity of the types and sizes of institutions. there are, of course, concrete elements for cyber defence that would not be out of place on a checklist for any institution : network plans with appropriate security layers, contingency and recovery plans and a well - conceived update management, to name some important items. but indeed, there is more to cyber resilience than a functional first line of defence. it requires responses to new as well as unknown circumstances that at the same time maintain the functional viability of an institution. this gives senior management a lot of room for manoeuvre. the tone from the top is instrumental in raising staff awareness of security issues. also, companies and organisations are evolving constantly. managing responsibilities is thus key. this includes breaking down the “ accountability firewall ”, where nobody assumes responsibility for the many intersecting aspects of cyber risk. we therefore demand that banks clarify what is at stake and how the risks are supposed to be governed. this is called a cyber strategy, and every

philipp hildebrand : current state of the financial system in switzerland introductory remarks by mr philipp hildebrand, vice - chairman of the governing board of the swiss national bank, at the half - yearly media news conference, berne, 14 june 2007. * * * i would like to use today ’ s publication of our financial stability report as an opportunity to share some thoughts with you on the current situation of the financial system. i will start with the most important message – the swiss banking sector and the financial system in general are in very good shape at the moment. based on our analysis, the outlook for the future is also essentially positive. as stated in our report, the favourable situation in the swiss banking sector comes as no real surprise. developments in the economy and the financial markets in recent years have been very positive, both in switzerland and abroad. although economic growth has been strong, it has had practically no impact on inflation to date. the credit standing of borrowers remained high. in addition, despite repeated, significant short - term price corrections – as was the case last week – the stock markets rose sharply overall in an environment of low volatility. how can these positive developments be explained? and are there any risks involved – in particular for the stability of the swiss financial sector? the good performance is not solely attributable to the favourable economic situation. structural aspects have also played a role. with that i mean first and foremost the increased level of efficiency that has been achieved in the financial system in the past few years. this rise in efficiency can be ascribed to the innovativeness of financial markets. new financial instruments, such as credit derivatives, enable banks to separate their credit risk and transfer it either completely or partially. this facilitates a better distribution of credit risk in the financial system and means that the risk is borne by those who want to and are able to bear it. the improved efficiency has resulted in a reduction in the financing costs of companies and households. lower financing costs help the economy and stock markets to achieve greater growth. the increased efficiency also appears to have improved the ability of global financial markets to absorb shocks. the downgrading of general motors ’ credit rating in 2005, for instance, or the major losses suffered by the hedge fund amaranth last year had no lasting impact on stock and credit markets. all in all, global financial markets are currently better able to absorb shocks, at least small to mediumsized ones. accordingly, serious turbulence in the financial system