The critical issue for the directors - and for the Reserve Bank - is just how much reliance should be properly placed on the parent bank and other components of the banking group when assessing the adequacy of the governance arrangements and prudential and operational soundness of the bank in New Zealand.
Thomson Reuters also brings a vast repertoire of international experience on risk management that we are keen to draw upon. Whereas risk management has been prominent on the radar of financial institutions and markets, the global financial crisis has unearthed serious shortcomings in risk management practices. And furthermore, coming from the centre, this has been disastrous.