Mr. Terence O'Rourke:

The risks we identified in our audit of banks were ... we identified them, we talked to the audit committee about them, we evaluated them. I mean risk has got two issues. One of the elements you have to understand is what is likelihood of the risk occurring and then, secondly, what the impact of the risk occurring would be. And the risks that turned out to be occurred, as we now know from the losses which you have described, they were not seen to be as likely risks. They were seen as remote risks ... in the terms of it.

Well, the issue for me ... for us, as auditors is to make sure the banks very clearly assess those risks professionally, thoroughly, getting best information that they could as to whether ... what the likelihood of the risks occurring ... in arising out of things like property loans about concentration. All of those things were on the table. They were debated and discussed at the banks. They got the best information that they could and then we stood back and we took our independent view of whether those risks were properly evaluated and whether they took into account the likelihood of those risks occurring and whether, in terms of the financial statements whether they reflected the likelihood of the risks occurring. And we were happy with that process and happy that the likelihood was properly assessed, based on the best information. And it turns out that best information did not accurately predict the future. We had a very extreme event occurring which nobody foresaw, virtually nobody foresaw.