• A genuine interest in performing your duties and responsibilities to the best of your ability
• An ability to recognize and avoid potential conflicts of interest
• The capacity for sound business judgment
• A familiarity with the bank's trade area and economic conditions
• Independence

This module will discuss the key responsibilities of directors, explain how management is evaluated and rated during an examination, and help you to develop ideas on how to enhance your performance as a director. The numerous deficiencies noted in the examination exercise will reinforce these concepts.

• Establish clear direction, policies, and risk limitations for the bank - Directors should not be involved in the day-to-day operations of the bank, but need to establish policies that give clear guidance with regard to acceptable activities, procedures, and risk limitations.



• Hire qualified senior officers - Senior officers should have a proven ability to operate departments or institutions of similar complexity and share the same attributes as directors (personal integrity, knowledge of trade area, capacity for sound business judgment, etc.).



• Ensure that management operates the bank within your established policies and risk limitations: Since directors are not typically involved in day-to-day activities, this is accomplished by:
• Implementing an effective internal audit and review program
• Establishing an effective management reporting system (board packages, committee minutes, UBPR analysis, etc.)
• Reviewing regulatory examination reports
• Staying involved by visiting the bank, attending meetings (especially with regulators and auditors), and by asking questions