What is the core of Corporate Governance – for private entities, it may be profit. In the banking sector, it seems that it is risk containment, and early warning systems and prompt corrective action to avoid failure. It is not risk aversion, but risk assessment and providing adequately to cover risks. It is also clear that earlier the detection, the lesser the cost.
Obviously, without a viable and accountable Corporate Governance structure, all this is not possible, however able the CEO. The three essential ingredients of Corporate Governance in this context are: (a)  Checks and Balances: Auditing Committees, External and Internal accounting systems which are independent of decision making on credit and borrowings.