Improving Bank Board GovernanceThe bank board member’s guide to risk management oversight |
Board risk oversight at banks has continued to evolve over the last several years. Regulators and industry bodies are taking more of an active interest in how boards approach risk governance. In fact, they have been providing pointed guidance on how the board may strengthen its risk governance, including the Federal Reserve’s recently issued notice of proposed rule making (NPR) on enhanced prudential supervision which includes requirements for enhanced risk governance.
Improving Bank Board Governance: The bank board member’s guide to risk management oversight provides an overview of risk oversight practices at large banks and suggests steps a board can take to strengthen its risk governance. In this point of view, Deloitte’s Center for Financial Services reviewed the board committee charters of 34 large banks and bank holding companies to identify whether those charters specify certain board risk oversight practices. Topics discussed in the report include:
- The role of the board in risk oversight
- The board’s defined responsibilities for risk oversight and how it addresses those responsibilities
- Responsibility for oversight of the management risk committee (as opposed to the board)
- Responsibility for establishing the criteria for management’s reporting on risk to the board
- Documentation of board member risk management qualifications
Published: 2011-12-29
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