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Banking failures show risk committees aren’t up to the job

Bank boards have risk committees tasked with forestalling problems. But the members of those committees don’t always have the skills or stature to make themselves heard

As banks and regulators scurry to respond to the most perilous industry conditions since the 2007-08 financial crisis, experts say one persistent issue needs attention: risk oversight that’s not always up to the job.

Board-level risk committees at many banks have neither the clout nor the expertise to push back against corporate leadership, risk professionals say, a weakness that should be addressed in the wake of the recent bank collapses.

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