Sentiments from Beth Horowitz, a board director of HSBC Canada, when describing the traditional role of a bank board in overseeing management, including importantly risk oversight and monitoring. She would have a lot of supporters with that position from experienced directors too. However, board members now are growing uncomfortable with new guidelines imposed by the powerful Canadian bank regulator, OSFI effective earlier this year, with respect of board oversight of risk.
Is it the board's role to run the company, set risk appetite, and provide risk oversight? Or are these new Canadian rules consistent with other rules now enshrined in Dodd-Frank in the US, the Walker Review in the UK, and normal practice followed in Germany? Welcome to a brave new world?
Check out the article from earlier this month in the Financial Post of Canada at http://business.financialpost.com/2014/10/04/tensions-rising-in-canadian-boardrooms-over-osfis-new-rules/.
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