Pursuing the Goals while Managing the Risks Improved client services—that will ultimately help the World Bank Group deliver on its goals—can only happen within a strong risk management culture and framework that preserves the Bank Group's reputation and financial sustainability in an increasingly uncertain and challenging environment. The Bank Group's approach involves actively taking, while carefully managing, risks in pursuing its objectives. It seeks to ensure that risks are adequately assessed, measured, monitored, and reported so that corrective action, if necessary, can be taken in a timely manner and impacts mitigated. As the environment changes and as new risks emerge, this process will evolve. The Bank Group faces a variety of risks related to development impacts, environmental and social safeguards, integrity, and financial management. It manages them through a customized risk rating and regular monitoring system as well as through engagement with clients. It manages other risks, including financial and operational risks, using leading industry practices and standards adapted to the Bank Group's purposes. The external challenges are many. They include a low interest rate environment, which affects income; the impact of low oil prices on some country clients; geo-political tensions, which affect some of the Bank Group's areas of operation; the risks of economic slowdown, which are facing some developing countries; and policy normalization in developed markets, which can heighten volatility in currencies and capital flows to some emerging market economies. Finally, the Bank Group continues to face operational risks, including the growing threat of data and information security breaches and external events that can impact business continuity and the physical security of its staff. As both a development and a financial institution, the World Bank Group faces special challenges in the current environment. Initiatives in 2015 on financing for development, the Sustainable Development Goals, and climate change will affect the development agenda for years to come. The emergence of new multilateral development institutions creates both opportunities and challenges for creative partnerships and requires fresh thinking about the financial structure of the World Bank Group. These changes are occurring against a backdrop) of major internal organizational reform and an uncertain external environment. Internal reform is being stabilized, although the impact on staff and program delivery still needs to be carefully managed. Budgeting effectively and securing resources for financial sustainability will also be key components of building stability.