The challenge, therefore, is to ensure that the corporate governance at community banks keeps pace with the changing risks that you will face in the coming years. Another consequence of so much public attention on the breakdowns in controls at a few organizations is difficulty in finding good directors.
One common theme we have heard during our examinations is the challenge facing banks of all sizes to retain, or attract, board members with the appropriate depth of understanding and commitment to sound corporate governance practices. Many potential directors who have the experience needed are cautious about the potential liability they face.