The rapid spread of avian influenza and other diseases illustrates the risks of globalisation, Monetary Authority Chief Executive Joseph Yam says.

In his latest Viewpoint column on the authority's website, Mr Yam said the rapid spread of bird flu in the region is quite worrying, although so far the disease has not spread to Hong Kong thanks to the heightened alertness in the wake of last year's SARS outbreak.

He referred to this as another manifestation of the risks of globalisation that human beings have failed to appreciate and consequently found difficult to manage.

"This is not an attempt to condemn globalisation. The benefits of globalisation are profound," he said. However, the SARS and bird flu viruses are as contagious as the financial crises of 1997-98.

"We also know very little about the transmission mechanism. I do not know to what extent is the potency of the viruses attributable to the greater interaction of peoples from different countries and to greater trade in goods and services under globalisation."

HK's financial watchdog

Mr Yam said one of his responsibilities involves the identification of risks and promoting the prudent management of them.

"I believe we had an easier task in that we were dealing with forms of human behaviour that were largely predictable - the profit motive, greed, herd instinct - and with the rule of the market and its imperfections."

It is a lot different when dealing with the life-threatening unknown, he said, adding that we need to give those involved the understanding, encouragement and support they need.