Banks’ Boards need to focus on all these risks and set firm wide limits on the principal risks relevant to the banks’ activities. Banks should focus on robust stress testing. Compensation packages should also form part of risk management policies. •  This crisis has also highlighted the importance of internal controls, good corporate governance and risk management.
As shown in the Senior Supervisors Group Report on Risk Management, some banks with strong risk management systems weathered the current crisis much better than many banks that had poor or inadequate risk management systems.