In addition, the CBC published the Financial Stability Report in May separately from the Monetary Policy Report and presented it to Senate’s Finance Committee. This has allowed for a better communication of the messages of each report, which have been complemented with deeper analysis of issues of macroeconomic and financial relevance, such as trend growth (September 2017 Monetary Policy Report) and the new information technologies applied to the financial industry (Financial Stability Report first half 2018). In December of this year we will continue with this work, including a new offprint of the Monetary Policy Report that will analyze in detail several aspects of the labor market. 10  Institutional relations. During the first quarter we created a new Institutional Affairs Department in charge of diversifying and improving the quality of the CBC’s communications, developing support programs for the community on issues of its competence and implementing the active transparency agenda of the CBC. It is worth noting here that the CBC began publishing the minutes of the monetary policy meetings of ten years back. In April we published the minutes of all the meetings from 2000 to 2007. Governance. The new work scheme between the Board and senior management was developed and implemented as of March for the discussion and decision making of monetary and financial policy matters, as well as the separate inclusion of institutional administration issues. Additionally, in the second quarter, we approved a change in the organizational structure designed to generate greater flexibility, empowerment and responsibility of the CBC’s divisions and areas.

Behavioral risk refers to behaviors within an organization that could potentially lead to negative business outcomes.3 In such organizations, behavioral risk is not effectively mitigated or even considered, and the stated values of the firm are not reflected in the actions and norms of the organization’s members. Group think is prevalent and employees do not speak freely, or are ignored, when they have concerns about the way their group is doing business. The letter of the law may be followed but not the spirit, with illegal activities only coming to light when discovered by authorities. “Conduct” is viewed as something that is only the responsibility of the compliance department through a set of rules and controls. The outcomes stemming from high behavioral 1/5  BIS central bankers' speeches  risk reduce cultural capital, damage the firm and the trustworthiness of the industry over time. In an organization with a high level of cultural capital, on the other hand, behavioral risk is low. Employees refrain from taking excessive risks and they are unafraid of – and rewarded for – raising issues up the management chain. When they speak up, they believe the organization will take them seriously with meaningful responses. The organization recognizes and rewards employees who understand and internalize the expectations of laws and regulations, and do not view compliance as a checklist. In organizations with a high level of cultural capital, an important factor in advancing to senior leadership is role-modeling behavior consistent with a firm’s values, assumptions and behavioral norms.