How do boards address risk management and oversight?

Abstract

This paper looks at the reporting that goes to the board and to regulators to inform them of the financial performance, balance sheet and risk profile of a bank. The paper concludes that a far greater degree of integration and coherence between the different reports is required to help the board execute its strategic responsibilities to shareholders and governance responsibilities to both shareholders and regulators. The paper also looks at a number of risk issues that pose challenges to bank boards with implications both for board composition and for the structure and remit of board committees.