Corporate governance as risk management

'As bankers and bank directors, you have specific responsibilities to manage the risks at your financial institutions and effectively oversee the systems of internal controls.'

ED. NOTE: The following is an excerpt from a recent speech by Federal Reserve Board Governor Susan S. Bies to the Pennsylvania Association of Community Bankers in Memphis.

Sound corporate governance is an essential element of a strong risk-management process. As bankers and bank directors, you have specific responsibilities to manage the risks at your financial institutions and effectively oversee the systems of internal controls.

Not only are the activities of banks central to credit …