Taking risk in service of clients is an essential part of the business of banking, including credit risk, interest rate risk, and various forms of operational risk.
Subject to these challenges being effectively addressed, boards and senior management of banks will take informed decisions to proactively manage provisions. Banks’ senior management, board of directors, external auditors as well as supervisors all have a critical role to play in the smooth transition and implementation of the new prudential accounting regime. Thank you. 3/3  BIS central bankers' speeches