But this is also a time when central banks, international organisations, and leaders generally must work with optimism and resolution towards improving the international financial system. Crisis can provide the stimulus to reform, the determination to change, and the spirit to co-operate. There is no better illustration of this spirit than Bank Negara Malaysia. Nor is there a more happy example of a central bank working in partnership with the people it serves to the benefit of the country. It is therefore with the greatest of pleasure and respect that I join you all in congratulating Bank Negara on its 50 years of achievements and in wishing the Bank and all who are associated with it continued success and happiness in the next 50 years and beyond. Tahniah kepada Bank Negara Malaysia di atas Ulangtahun ke lima puluh!2  2  4  Congratulations to Bank Negara Malaysia on its 50th anniversary. BIS Review 12/2009
Such a process is undeniably messier, less predictable and possibly harder to explain in a consistent way. But it is also precisely these very characteristics that make it much more relevant in the world that we live in today. 3/5  BIS central bankers' speeches  At the Bank, our work on proportionate regulation and risk culture aims to support this evolution. For example, the innovation sandbox allows financial institutions greater regulatory room to test innovations within a controlled environment and learn from emerging experience. We are also examining options to better tailor the regulatory framework to the size and complexity of financial institutions. And we are directing greater supervisory focus on an institution’s prevailing risk culture to determine the degree of supervisory intensity that we apply to individual institutions. We expect these developments to pave the way for more constructive dialogue with institutions to achieve regulatory frameworks that will deliver a sensible balance and greater synergies between risk and innovation. Building resilience The third important shift that I want to mention concerns a stronger focus of innovative risk management approaches on building resilience, in addition to simply averting or reducing risks. In the area of network security, organisations are increasingly adopting an “assume breach” paradigm where they operate on the assumption that a risk event has already occurred. In the financial world, reverse stress testing is being incorporated into risk management approaches to identify the scenarios that would break an institution.