They also would rather join a board on which they are able to balance their time among all of the areas of oversight - strategy, marketing, financial performance, human resource development, community involvement, and so on - and not just governance, compliance, audits, and internal controls. This is another result of inconsistent attention over time to good governance practices.
Operational risk The Federal Reserve System is also conducting selected reviews for operational risk at community banks. By operational risk, I mean “the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events,” which is the definition used by the Basel Committee on Banking Supervision.