For example, internal control procedures that give front- and back-office responsibilities to independent units within the corporation reduce the ability of individuals to hide losses from bank management and thereby reduce operating risk. An internal audit function, in turn, verifies that a bank’s internal control procedures function as intended.
Third, there is a need to rebalance the development model, by creating favourable conditions for the expansion of the tradable goods sector; for the growth of capital and labour productivity, as well as total factor productivity; and for innovation as regards both production processes and technologies and products.