The global financial crisis has exposed deep flaws in the governance of many financial institutions. Chief among these flaws was the inadequacy of Boards’ understanding and control of risks taken by management.
The result was that Boards failed to limit exposure to complex or leveraged lending, allowed their institutions to operate with a material liquidity shortfall. In this paper, we describe the roles that Boards of Indian financial institutions need to play to fulfill their responsibility of providing optimal risk oversight in their organizations.
