Svein Gjedrem: The krone exchange rate and competitiveness in the business sector Address by Mr Svein Gjedrem, Governor of Norges Bank (Central Bank of Norway), to the Federation of Norwegian Process Industries, Oslo, 29 April 2004. The text below may differ slightly from the actual presentation. The address is based on the assessments presented at Norges Bank’s press conference following the Executive Board’s monetary policy meeting on 21 April, Inflation Report 1/04 and on previous speeches. The charts can be found on the Norges Bank’s website. *  *  *  The primary objective of monetary policy is to ensure nominal stability. There were wide fluctuations in the Norwegian economy in the 1970s and 1980s. Economic developments were marked by high and variable inflation. Inflation rose gradually and it took a long time before it fell. The absence of a nominal anchor was one of the main reasons behind these pronounced swings in the Norwegian economy. With a policy of low interest rates and devaluations, inflation took root. Nominal interest rates were kept at a low level even though inflation and the value of tax-deductible interest expenditure rose. Frequent devaluations from 1976 were not able to prevent a decline in the manufacturing sector. On the contrary, they proved to be self-reinforcing. The wide fluctuations culminated in a credit boom in the mid-1980s, and a rise in costs as a consequence of the spring 1986 wage settlement. A pronounced downturn and high unemployment followed at the end of the 1980s.
Among other things, an integrated approach analyzes and plans for the impacts of disruptions on suppliers and customers from an operational as well as reputational perspective. Integration broadens the focus from the availability of infrastructure (e.g., the servers are up and the facilities are accessible) to successful organizational outcomes (e.g., the organization is able to deliver products and services). In the current threat environment, achieving resilience is as much about protecting the integrity and confidentiality of information as it is about maintaining availability. An integrated plan delivers coordinated and coherent responses to incidents, including ones of significant scale, complexity, and surprise that can overwhelm normal control systems.6  The Complexity of Control The second resiliency challenge is the complexity of control. To improve resilience, we seek to control outcomes, and risk management has a lot to say about control. A simple story about 2/5  BIS central bankers' speeches  control goes like this: when we are setting up a business process, we look for sources of problems and start adding controls. Mainly, we’ll create controls to prevent problems. But, recognizing that there will be times when prevention doesn’t work, we also put in place controls to detect problems and then correct them. Once the process is up and running, if problems come up that we didn’t expect, we add additional controls to prevent those problems from happening again. I wanted to go through some examples of how this doesn’t always work well in practice.