Because it is impossible, we should make society as robust as possible to uncertainty, while realising that it is not possible to insulate it completely from uncertainty. I do not believe that “the Truth is out there” waiting to be discovered.
On this score, Australia has been well served by APRA’s approach to supervision, which has had an industry-wide focus. APRA has been supported in doing this by the Reserve Bank and by the Council of Financial Regulators which has regular discussions about system-wide developments. It is important that as the new rules are agreed and implemented, this strong focus on system-wide supervision is retained.