Banks should, inherently, be flexible in their operations so that they have the ability to meet the evolving stakeholder expectations. •  Banks should be able to appreciate the risk-return trade-off involved in various activities. The basic premise that greater return would invariably come from assumption of higher risk, needs to be appreciated and disseminated, both within the organization and to banks’ customers.
Banks need to develop the ability to discern good risk from bad so that they selectively take on only those risks that are in alignment with the bank’s long term strategic vision.