Boards can be strengthened by requiring more financial services expertise of directors, as well as by drawing them from outside Wall Street. Furthermore, a board can obtain better information if the risk managers in the firm are required to report directly to it on a regular basis. The board’s risk committee should also have regular meetings to discuss firmwide risk with unit heads across the firm, without top management present, so that they have a sense of what is going on from those who are closest to the action. Of course, if competent boards are propelled by the same risk-taking
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I have trouble seeing regulation to force this. And very unlikely to be done voluntarily.
