We’ve come a very long way since the APP was launched. Last December, we took a first step on the path towards “normalisation” by completing the rotation of instruments from a configuration relying on the pace and horizon of monthly bond purchases to one founded on forward guidance on our policy interest rates as the principal instrument of monetary policy.
Frequent, small losses can generally be absorbed in the operating margin of the product or service. It is the low-probability, large losses that provide the greatest challenge. And, it is just such risks--the ones that can severely damage, if not kill, an organization--that too many enterprises do not formally take into consideration.