While it is obviously too early to say the final judgments, July and August CPI data indicate that VAT increase is reflected in the prices to a smaller degree than previously expected, and, probably more importantly, there is no sign that underlying inflation trend would have accelerated due to the tax increase.
The 2002 survey of 178 corporate directors conducted jointly by you (the IIA) and the National Association of Corporate Directors showed that directors are not focusing on risk management. I was surprised to learn that 45 percent of directors surveyed said their organization did not have a formal enterprise risk management process--or any other formal method of identifying risk.