Ed Sibley: Governance and risk in a time of uncertainty and change

Speech by Mr Ed Sibley, Deputy Governor (Prudential Regulation) of the Central Bank of Ireland, to the Institute of Directors , 17 February 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good morning.

I would like to thank the Institute of Directors for inviting me to speak with you today. 

We are living through a time of great uncertainty – uncertainty over the short term path of the COVID-19 pandemic and its longer term effects; uncertainty regarding the pace and extent of technology and related behavioural changes; uncertainty about the timing of the effects of climate change; and much more besides.

This uncertainty has implications for how we think about risk and probabilities, and importantly how we govern, lead and manage our organisations.  I will explore these issues in my remarks today. I will outline how the approach to the fundamentals of governance and risk management need to continue to improve.

I will start by summarising some of the Central Bank's key regulatory and supervisory priorities for 2021.

Financial Regulation Priorities in 2021

The mission of the Central Bank is to serve the public good by safeguarding monetary and financial stability and by working to ensure that the financial system operates in the best interests of consumers and the wider economy. The Governor of the Central Bank recently outlined the Bank's 2021 priorities. Today, I will expand on some of the sub-set of specific financial regulation priorities for 2021, which are focused on the near and longer term challenges we see in the system.