At times, we may be more effective by helping to convene a group of market participants to reach consensus on best practices or a common solution than we would be defining or imposing a solution ourselves. Of course, not all problems are amenable to a solution by public support of private initiative, but we should be open to these types of approaches when they are likely to be successful in achieving our objectives. And sixth, we have to be careful that the necessary and constructive attention that has been devoted over the past several years to meeting control and compliance challenges does not detract from the classic safety and soundness requirements of risk management. These should not be competing priorities. The financial costs and reputational damage associated with compliance and control failure can be very large. And the investments in the internal control infrastructure—in audit and corporate governance changes and in controls over financial reporting—are crucial parts of the foundation for a credible risk management framework. But we need to make sure that the demanding and ever evolving challenges of managing credit and market risk receive a degree of attention by senior management and boards that is commensurate with the risks. And this balance needs to be reflected in where we focus our supervisory efforts, as well. These classic prudential issues, those that make a critical difference in reducing the vulnerability of markets to systemic risk, need to be a principal focus of supervisory attention.
And, I’ve proposed a set of solutions based on risk management tools: a focus on organizational objectives, end-to-end management of critical processes, integrated risk management, and a systems approach to control. These all share the common characteristic of being integrative. Resilient components do not necessarily add up to a resilient whole. So, organizational resilience is an enterprise goal that is achieved through coherent and coordinated enterprise solutions. A resilient organization is able to make better plans, decisions, and actions that deliver desired outcomes over a range of conditions. To strengthen resilience, we seek to tame the problematic present and constructively move forward into the hazy future. The tools of risk management can help get us there. 1 National Research Council, 2012, Disaster Resilience: A National Imperative, Washington, DC: The National  Academies Press. 2 Gillian Tett, 2005, The Silo Effect: The Peril of Expertise and the Promise of Breaking Down Barriers, New York, 4/5  BIS central bankers' speeches  NY: Simon and Schuster. 3 Committee of Sponsoring Organizations of the Treadway Commission, 2017, Enterprise Risk Management:  Integrating with Strategy and Performance. 4 Philippa Girling, 2013, “Operational Risk and Convergence” in Operational Risk Management: A Complete  Guide to a Successful Operational Risk Framework. Hoboken, NJ: Wiley. Ramy Farha, Allen Meyer, Evan Sekeris, and Elena Belov, 2018, Non-Financial Risk, Convergence, and Integration, Oliver Wyman. Steve Culp and Chris Thompson, 2016, The Convergence of Operational Risk and Cyber Security. Accenture.