If the lines of business have high correlations, investors would expect management and the boards of directors to have in place more significant processes to monitor and mitigate those risks. Complex organizations should continue to improve their risk-management and reporting functions.
Achieving sound and sustainable budgetary positions and on this basis allowing the free operation of automatic stabilisers is the best contribution fiscal policy can make to macroeconomic stability. Economic differentials in the euro area and structural policies The draft resolution also refers to the risks posed by economic differentials across euro area countries, which to some extent reflect structural rigidities and/or inappropriate national policies.