In particular, let me highlight a few basic principles to which we in the Reserve Bank attach considerable importance in a banking sector context. •  First, I would particularly stress the importance of directors having a sound understanding of their company's business, the nature of its risks and its strategic direction. This provides the foundation for the sound management of any company.
It is absolutely crucial in a bank. •  Second, we firmly believe that the ultimate responsibility for ensuring that a company's risks are being properly identified, monitored and controlled lies in the boardroom.