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risks, as well as a Risk Management Committee to deal with all other management and mitigation. Adopting some or all of these policies and
non-financial risks. It is important that both of these Committees procedures should help ensure that directors act not only as an
consist of Board members, and that the majority of their members, if excellent custodian of the institution’s wellbeing, but also safeguard
not all of the members, are independent. As with any Board directors from potential liability.
Committee, the Risk Management Committee and the Audit Committee
must hold regular meetings in order to be effective. The members of
these Committees should have an excellent understanding of finance,
and more specifically the banking industry. It is also extremely
important that the members of these Committees stay up-to-date on
industry trends and the overall economic climate.

So, while there are changing responsibilities and fiduciary obligations,
the paramount job of a director continues to be in overall risk

Preferred
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Provider

Preferred
Solutions
Provider

Seminars and Institutes

A COMMUNITY BANKER | 30 | Fall 2024
RKANSAS