Emphasis on corporate governance and the requirement to ensure ‘fit and proper’ persons to hold positions on the board and management cannot be emphasized enough. We continue to emphasis that good governance should be the top priority of all financial institutions that come under our surveillance and supervision.
But financial innovation also presents new and different aspects of risk that institutions need to address. I will first describe some of the broader risk management issues facing banks. Then, I will describe some guidance supervisors have recently issued to illustrate the importance of these concepts.