However, smaller firms are not immune from climate-related financial risk and could be more susceptible if they are particularly concentrated in a vulnerable sector, product or geography. As a guide, small firms and firms with smaller exposures to climate-related financial risk may focus more on a qualitative strategy for adapting to climate change without as much need for quantitative metrics to substantiate their approach, possibly relying on third party metrics. The expectation for small firms with material exposures would be more aligned with the expectations of medium and large firms. Medium and 3/6  BIS central bankers' speeches  large sized firms, and firms with medium or large exposures to climate risk, should link business strategy changes to scenarios, identifying triggers to modify their strategies. Therefore, an appropriate approach depends on the firm’s business model. A good starting point for smaller firms when undertaking scenario analysis might be to do a qualitative ‘walk-through’ scenario considering a possible sequence of events (shocks and responses) before moving on to quantification. Recognising the wide variety of firms that are expected to respond to SS3/19 in terms of complexity/simplicity of their business model, strategy, size and varying exposures to identified climate-related risks, we decided to provide additional guidance to firms on our use of proportionality in supervising climate-related financial risks.
Without their support, it would have been very difficult to complete this phase of the Survey. Distinguished Guests, As you are aware, the Zambian economy has recorded significant positive developments in the recent past, owing to the wide-ranging economic reforms the Government has been implementing since 1992. The reforms, which are aimed at stabilising the economy and supporting economic recovery for the purpose of reducing poverty among our people, have facilitated increased investment in various sectors of the economy, such as, agriculture, tourism, construction and manufacturing. As you may also be aware, the mining sector has attracted unprecedented amounts of investment in the recent past. Government’s economic reforms since the early 1990s have contributed immensely to the boosting both local and foreign investors’ confidence in the Zambian economy, which is an important pre-requisite for attracting capital flows. The survey findings that we are disseminating today indicate that Foreign Private Capital flows to Zambia in 2007 rose to US $ million from the US $ million recorded in 2001. The 2007 inflows were largely in form of foreign direct investment, borrowing from nonaffiliates (Loans and Trade Credits) and portfolio investment. We believe that the introduction of economic reforms led to a substantial increase in private capital flows, which regrettably, we have not been able to capture on a regular basis due to budgetary constraints. Mr. Chairman, History has taught us that high volatility in private capital flows, if not properly monitored and managed, can induce financial and macro-economic instability in the domestic economy.