KUALA LUMPUR: “Being paranoid” is a form of risk management that central bankers should possess, Bank Negara Malaysia Governor Tan Sri Zeti Akhtar Aziz said.
Also referred to as productive paranoia, it allows central bankers to know what could go wrong and prepare for the worst that is yet to come.
Speaking during her address at the Leadership Energy Summit 2015 earlier today, Zeti said it is important to build buffers to prepare for the unexpected events before they happen.
“Being paranoid and building the resilience against such shocks will contain its damaging effects. Therefore continuous rigour needs to be applied all the time, during the good times and the challenging times.
“Vigilance, detecting developments that could signal danger, early recognition of risks are all important. Also knowing how your risk profile changes will avoid being taken by surprise,” said Zeti.
The Leadership Summit is organised by Iclif, an independent non-profit organization created and funded by Bank Negara Malaysia with the aim of providing highly practical and relevant executive development and advisory services in Malaysia and globally across all industry and government sectors.
LESA 2015 is one of Iclif’s proprietary platforms used to engage like-minds; those who have either exhibited Leadership energy through their own personal experiences or alternatively done deep research that decodes the sources of such energy.