In other words, we should be ready to review our ways of working to the extent of contemplating changes in organisational structures. Again, let me refer to a case in point in the area that I am best acquainted with: the ECB’s Single Supervisory Mechanism’s (SSM) SupTech agenda. This particular strategy rests on four key building blocks, namely: (i) implementing an innovation model based on open collaboration, (ii) fostering a shared digital culture among its staff, (iii) cultivating an innovation ecosystem that connects stakeholders from within the SSM with start-ups, academia and other institutions, and (iv) developing impactful tools and solutions. Lastly, central banks may want to take the opportunity to try out new resources such as regulatory sandboxes and innovation hubs and to assess their actual ability to foster the development of new ideas, so as to help move them closer to fruition. Similarly, central banks must upgrade the infrastructures and services that they themselves provide since these may constrain the type and depth of privately-led innovation that can take place, and will also having a bearing on overall competitiveness and competition across the industry. Central bank digital currencies are, perhaps, the most visible illustration of this trend but there are others such as the growing interest in exploring blockchain-based solutions for the settlement of payments and securities and the discussions regarding the issuance of a digital identity. 3  For a deeper insight into these topics, please see FSB (2019) “Third-party dependencies in cloud services Considerations on financial stability implications”, December.
Many countries have had to reallocate budgets, issue debt, or rely on foreign aid to finance immediate relief and reconstruction efforts. Most have yet to develop robust public disaster risk financing strategies using ex-ante risk financing solutions, which includes setting aside reserves, establishing contingent credit, and tapping on insurance and capital markets. 8. Several ASEAN countries, however, have made significant strides in the right direction. For instance, Philippines has put in place a disaster risk management strategy since 2010, and implemented a parametric insurance programme covering 25 provinces, which will provide rapid liquidity for the government to enable rebuilding and recovery efforts when disaster strikes. It is now working with the World Bank on a sovereign catastrophe bond to complement the insurance programme, which will provide cover for more extreme events. Over the years, Indonesia has consistently increased its budget allocation for disaster management. Most recently, Indonesia has adopted a new disaster risk financing and insurance strategy, which encompasses the government insuring government buildings from this year. A Coordinated approach to Disaster Risk Financing 9.