I will emphasise a few changes that are expected of banks in order to yield and realize full benefits of the Risk Based Supervision initiative. Firstly, the role of the board has been clarified and expectations heightened to an extent that the board can not be a peripheral figure of banks any more.
Through the Risk Management Guidelines, the RBM calls for active board oversight in policy and strategy formulation, review and ensuring that management executes its responsibility or is held accountable. Secondly, the governance structure should not impede proper risk management and reporting. Where this is the case, it should be addressed as a matter of urgency and priority.