Introduction: The Confluence of Risk and Governance
Introduction: The Confluence of Risk and Governance
Corporate Governance, Information and Control
The Nature of Corporate Governance in Banking
Regulation and Governance
The Centrality of Risk Management
The Mission, Organisation and Governance of Risk Management
A Cartography of Banking Risks
Operations Risk in Extreme Market Conditions
Managing Legal Risk
Managing Reputation Risk
Drawing Boards: Motivations and Responsibilities in the Boardroom
Executive Compensation: Performance, Regulation and Ethics
Fair Value, Auditing and Internal Controls
Risk Management and the Role of Culture
The Board of Directors
Compensation
Auditing, Reporting and Disclosure
Govern: from Greek kybernân (κυβερνάν); to steer (a ship) Risk: from Greek rhiza (ῥίζα); cliff, root (through meaning of: to sail around a cliff)11 From Webster’s Encyclopaedic Unabridged Dictionary of the English Language.
A TALE OF THE HIGH SEAS
In the Aeneid, the Roman poet Virgil told the story of how Aeneas fled the flaming ruins of Troy and, after a perilous journey, landed on Italy’s shores, where his descendants would one day found the city of Rome. In those days, the Olympic Gods played a major role in people’s life (especially in the lives of heroes such as Aeneas), and so it was that Venus, who was protecting Aeneas against the hostile Juno, asked Neptune to ensure safe passage to Italy for the Trojan fleet. The god of the sea agreed (as you can imagine, it was difficult to say no to Venus), but demanded that one member of the crew be sacrificed to him: Palinurus, the helmsman of Aeneas’ ship. Neptune rode over the seas to calm them down and sent Somnus, a fellow god, disguised as the sailor Phorbas, to take Palinurus’ life. However, as Somnus tried to convince him to leave the helm and rest, Palinurus would have none of it. He was a very expert pilot and would never
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