12 Institute of Internal Auditors, “The IIA’s Three Lines Model: An Update of the Three Lines of Defense,” July 2020. 13 For a “multiple roles” perspective of risk managers, see Matthew Hall, Anette Mikes, and Yuval Millo, “How Do Risk Managers Become Influential? A Field Study of  Toolmaking and Expertise in Two Financial Institutions,” April 2012. Also, see, Ben W. Heineman Jr., The Inside Counsel Revolution: Resolving the Partner-Guardian Tension, 2016, American Bar Association. 14 Board of Governors of the Federal Reserve System, Division of Supervision and Regulation, “SR 20-24: Interagency Paper on Sound Practices to Strengthen Operational  Resilience,” November 2020. Also, see Striving for Operational Resilience: The Questions Boards and Senior Management Should Ask,” Oliver Wyman, 2019. 15 Basel Committee on Banking Supervision, “Revisions to the Principles for the Sound Management of Operational Risk,” March 2021. 16 Nathan Furr, Andrew Shipilov, Didier Rouillard, and Antoine Hemon-Laurens, “The 4 Pillars of Successful Digital Transformations,” Harvard Business Review, January  2022. 17 Bank for International Settlements, “Cyber-Resilience: Range of Practices,” December 2018. By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.
Part 3 At this point, allow me to offer some reflections on the changing economic and financial landscape for internationally active financial institutions. Asia is host to a diverse group of foreign financial institutions, many of which have a long history and entrenched presence in the region, with strong roots in our local economies. For the most part, these institutions have made important contributions to the development of domestic financial systems and economies. This includes meeting the demands for financial services in areas not being extensively served by the domestic financial system. While the international policy response to the global financial crisis has been extensive and on an unprecedented scale, an area that has not been as extensive is the cross-border dimension of policy making. More specifically, the global financial crisis has highlighted the gaps in the international framework for the regulation and supervision of the cross-border activities of financial institutions. This has generated renewed concerns on the extent to which external shocks might be transmitted to the domestic economies as a result of the presence of such international foreign financial institutions. As part of the international regulatory reforms, significant progress has been made to ensure that systemically important financial institutions have a higher degree of resilience and stronger incentives to reduce their systemic risks over time. This includes through the holding of higher capital, and requirements for all global SIFIs (systemically important financial institutions) to develop recovery and resolution plans.