Tuesday Topic: Building a Risk-Savvy Board

Risk oversight has always been a board duty, but today’s threats are broader and faster-moving. As Independent Banker highlights, strong boards define risk tolerance through policy, use active committees, and look forward—not just backward—to anticipate stress. With cyber, vendor, AI, and liquidity risks demanding sharper focus, directors must ask tough questions, challenge assumptions, be prepared to pause initiatives when risks approach tolerance levels, and pursue continuous training to stay effective.

Are your directors spending enough time on the right risks? How clear is your bank’s true risk tolerance? What would it take to strengthen director education and engagement at your institution?