The role of the financial regulator is threefold. First, to complete the reforms to repair the cracks in the system exposed by the global financial crisis. Second, to implement regulations consistently. And third, to monitor evolving markets and evolving risks. Confronted by the complexity of the financial system and the changing nature of risks, officials and private risk managers alike need to respect the limits of their understanding and models, no matter how sophisticated. Being prepared with robust capital, liquidity and risk assessment is of the essence. Risk management requires adopting a broad perspective, understanding the limits and operating with enough room for manoeuvre to deal with the unexpected.