Connotation of oversight has changed and expanded, to mean effective leadership in guiding the management in strategic decisions, creation of suitable structures and processes for effective implementation and monitoring of managerial performance; and ensuring compliance with laws and regulations. The scope of oversight has undergone further change with implied inclusion of an ethic that transcends strict response to regulations.
This interpretation of the meaning of governance and role of the Board has gained greater currency in the wake of some big ticket events like collapse of Enron, WorldCom, HIH insurance, and, in the aftermath of the recent crisis,  BIS central bankers’ speeches  1  where a large part of the blame was attributed, inter alia, to unethical conduct by banks and market participants.