Risk and Governance
Discipline: Regulation, Operational Risk
Since the financial crisis the corporate governance of banks has been identified as one of the critical elements in a more stable financial system. However, due to the peculiar nature of financial firms as well as to the fundamental role of the financial industry in modern economies, the issue has remained complex, and very little of the proposed changes to the current paradigm has been translated into practice. This new edition of Risk and Governance: A Framework for Banking Organisations details how to structure a new corporate governance framework for financial institutions that responds to the threats highlighted by the financial crisis: excessive risk taking; conflicts of interest; biased incentives and compensation; and ineffective supervision.