Institutions should also be aware that traditional products packaged in a slightly different way or offered to a new customer segment can substantially alter their risk profile. I point to recent cases of legal and compliance risks that occurred because the institutions involved did not necessarily conduct proper due diligence on their new products.
At the state and local levels, public officials contribute to the attractiveness of investment conditions by maintaining sound fiscal policies. These policies allow local officials to take the lead from Social Compact and begin to market local neighborhoods using the analysis that demonstrates the buying-power residing within these more challenging neighborhoods.