The institutional arrangements in many instances conferred importance and status on the risk takers at the expense of independent risk managers and control personnel. Where strategy was in place, boards did not establish suitable metrics to monitor implementation. 25. Reform measures have been initiated in the area of corporate governance.
Major structural changes in the areas of risk management, compensation policies and transparency in operations with regard to the Board and top management have been introduced in several countries to improve the overall functioning of the financial institutions and enhance governance. 26.