Provided effective risk control mechanism is in place, restrictions on cross-boarder capital transactions will be relaxed in a selective and sequenced manner so as to gradually move toward capital account convertibility”.
Robust information technology systems are a necessary condition for supporting the MIS framework as the quality of risk information that the Boards and the top management receive depends largely on the quality and robustness of the information technology systems.6 In addition to prescribing the risk appetite for the institution, the board also needs to lay down appropriate risk strategy and ensure that this is institutionalised throughout the organization.