This type of control is being adopted by more and more organizations each year, and can only increase as more activities are authorized by the regulators and the Congress. Regulatory policies and operating procedures have had to respond to these realities, to focus on the process of decisionmaking for the total organization.
Thus, the Federal Reserve -- the historical umbrella supervisor -- also has found it necessary to concentrate more on the process that banking organizations use to manage market, credit, operating and exchange rate risk, and less on the traditional after-the-fact evaluation of balance sheets that can and often do change dramatically the day after they have been reviewed by the supervisors.