Finally, an effective board should have a composition, governance structure, and set of established practices that are appropriate in light of the firm’s size, complexity, scope of operations, and risk profile. Boards need to be aware of their own strengths and weaknesses, and to ensure that directors bring an appropriately diverse range of skills, knowledge, experience, and perspective.
Actually, in decades gone by, Irish lenders followed mechanical rules on LTV and LTI ratios which seemed to keep them out of trouble. Evidently they are both fairly crude: the borrower’s income can change, and an LTV ceiling is less constraining the higher the level of the property purchase price.