There should be a policy and procedure in place to manage the risks. Internal control: The financial institutions should set up preventive, detective and corrective control mechanisms that may be built in the operating procedure or programmed in the system involving new product and service delivery. Contingency plan: The financial institutions should formulate the contingency plan to carry on the business under unexpected events. Staff development: The financial institutions should establish a staff development plan to enhance personnel capabilities to conduct new product and service operations. Last topic of presentation is new challenges for BOT supervision and ways to overcome. 5. New challenges for BOT's IT supervision and ways to overcome  (1)  While the financial industry is moving fast with innovations and new developments, supervision needs to ensure the stability of the financial system. Supervisors need to encourage financial institutions to operate their businesses in a safe and sound manner as new delivery channels or services could exacerbate some of the same risks inherent in traditional banking. However, the prudential regulatory framework has to be congruent to the evolution of the e-banking business. Therefore, we need to strike a balance between the need to maintain the stability of the financial system and to foster developments, competition, and a level playing field. There are ways to overcome this challenge. BIS Review 35/2005  7  -  Regulators need to keep up with the development of the market while being proactive in formulating the regulatory framework.
But, above all, I feel a great responsibility at having inherited the enormous legacy of an institution with the history, functions and position in the Spanish economy of the Banco de España. I wish to begin this new stage thanking those people who have steered my career over the years. I have learnt from all of them and their teachings have been a source of wealth for me. My sincere thanks to all of them. Thanks, of course, to José Luis Malo de Molina, under whose leadership of the Research Department I have pursued most of my career, and, among others, Eloísa Ortega and José María Bonilla. They were most forthcoming with their trust and have, at different times, been a major source of guidance and support for me. Thanks also to Fernando Restoy, above all for being a point of reference in terms of competence and dedication to public service. Thanks especially to José Manuel González Páramo, who oversaw my Ph.D. and took me to Frankfurt. That experience gave me, early on, a first-hand view of the work of the European Central Bank and of the Banco España’s potential as a member of the Eurosystem. Naturally, my greatest gratitude is to Governor Luis María Linde for naming me Director General for Economics, Statistics and Research almost two and a half years ago. That was, unquestionably, the necessary step for taking me to where I am today. 3/5  Thank you, Governor, for your constant support over this period.