If the value of param is INT_MAX, the behavior of evaluating param + 16 is undefined. It doesn't become defined behavior because a particular implementation makes a particular choice. And the implementation doesn't have to tell you what choice it makes.
What the standard means by "ignoring the situation completely" is that the implementation doesn't have to be aware that the behavior is undefined. In this particular case:
for (int i=param; i < param + 16; i++)
that means the compiler can assume there's no overflow and generate code that always executes the loop body exactly 16 times, or it can generate naive code that computes param + 16 and uses whatever result the hardware gives it. And the implementation is under no obligation to tell you how it decides that.