Strong corporate governance is the foundation for safe-and-sound operations. Effective governance frameworks help maintain profitability, competitiveness, and resiliency through changing economic and market conditions by incorporating objectives, policies, and risk limits that are appropriate to the size, complexity, and risk profile of the institution. Directors are responsible for providing a clear governance framework and for monitoring the extent to which officers and employees comply with this framework, and with applicable laws and regulations.
Internal and External Audit Programs
Each institution should have an internal audit program that is appropriate to its size and the nature and scope of its activities. When properly structured and conducted, internal audit programs provide vital information about risks and controls so management can promptly address any identified weaknesses. An external auditing program complements the internal auditing function by providing management and the board of directors with an independent and objective view of the reliability of the institution's financial statements and the adequacy of its financial reporting internal controls.