It also makes the organization attractive to investors, clients and business partners. Equally important, corporate governance reduces exposure to reputational risks or the potential that a negative publicity regarding an institution’s business practices will cause a decline in the customer base or lead to costly litigation. •  Risk management matters are necessary parts and parcel of sound strategic planning.
BIS Review 50/2004  3  The need to include risk management in strategic planning cannot be overemphasized as we have seen a number of banks getting into trouble where the root cause can be traced to inconsistencies between the bank’s strategic goals and risk management objectives or simply the lack of risk management objectives.