In the second part of my lecture, I will address the issue of economic diversity in the euro area and show that the euro area shares this characteristic with the United States – an economy and a currency area that is a natural reference point taking into account its size.
I would like to elaborate on the main elements of a risk management framework that apply to banking institutions irrespective of their size and complexity of business: First and foremost, effective risk management framework demands active involvement of the Board of Directors (BoD) and senior management in the formulation and oversight of risk management processes.