An effective risk-management process can help identify areas of conflict that emerge as new products and management processes are adopted. Risk assessments initiated early in the planning process can give the bank time to get mitigating controls and monitors in place and conduct an internal audit validation of the quality of those controls, before product launch.
In 2008 the Bank of Mexico formally replaced its policy instrument, moving from a quantitative guideline (the “corto”) to the overnight interest rate used in the interbank market.