Almost by definition, central banks operate in an uncertain world since monetary policy works with a well-known lag – a long and variable lag. Conducting monetary policy against the backdrop of the global financial crisis and the ensuing economic downturn is a challenging task, particularly for small open economies like Mauritius. The Bank had to react appropriately and in a timely manner.
Firms need to be: Alert to developments in the risk outlook; Proactive in the early recognition and management of those risks; And aware of possible pitfalls in the estimates provided by internal models.9  The changing nature of financial services  Innovation and transformation are an increasingly core part of financial services, to meet new consumer demands and address new challenges.