Confidence in the risk-management practices of individual firms can be valuable in maintaining confidence in the markets in which they operate. Risk-management performance during recent market events Although some of the risk-management techniques applied during the past nine months were successful, in other areas challenges remain.
BIS Review 5/2003  1  3  discretion in favor of supposedly “unbreakable” rules. The problem, this argument runs, is that the public will understand that the central bank always has the option of abandoning its rule, should the rule happen to dictate a policy action perceived at the time as counterproductive.