The Financial Stability and Development Council, headed by Union Finance Minister Nirmala Sitharaman, this week deliberated the need for having more early stress indicators to enable regulators to identify potential problems and deal with them in time. The focus of top policymakers and regulators on identifying signs of stress in the financial system must be welcomed as it will help strengthen financial stability. The increased global economic and financial interdependence has also increased risks. While interconnectedness has its merits, emerging market countries should build safety margins to limit the downside risks. At this stage, there are several interrelated risks emanating from the global economy. Although they may not pose an immediate threat to financial stability, policymakers would do well to remain prepared.