The Basel Committee on Banking Supervision (BCBS) has published Effective corporate governance for banks. The document contains a revised set of corporate governance principles which supersede the guidance the BCBS issued in 2010 which provides a framework within which banks and supervisors should operate to achieve robust and transparent risk management and decision making.

The revised principles emphasise the importance of risk governance as part of a bank’s overall corporate governance framework and promotes the value of strong boards and board committees together with effective control functions. In particular the revised principles:

  • expands the guidance on the role of the board of directors in overseeing the implementation of effective risk management systems;
  • strengthen the guidance on risk governance including the risk management roles played by business units; and
  • recognise that compensation systems form a key component of the governance and incentive structure through which the board and senior management of a bank convey acceptable risk-taking behaviour and reinforce the bank’s operating and risk culture.

View Revised principles on corporate governance for banks issued by BCBS, 8 July 2015