The American Association of Bank Directors Forms Risk-Reward Committee for Its Members
The American Association of Bank Directors (AABD) today announced the formation of the AABD Risk-Reward Committee. Joe O’Donnell, the Director of Enterprise Risk Management at Fannie Mae and a long-time banker with extensive ERM experience, will be a Co-Chair.
“It is essential that bank boards actively supervise enterprise risk management in their institutions,” David Baris, President of AABD, said. “The name of the Committee connotes the inextricable connection between risk and reward. Too often, bank boards are evaluating risk in a vacuum. That needs to change.”
The Risk-Reward Committee will play a valuable role in informing its members risk-reward management fundamentals, regulatory developments, best practices, and corporate governance measures that can be adopted to assist them and their boards.
The Committee will also facilitate communication among members of the Committee, provide feedback to AABD on issues affecting bank directors’ ERM oversight, and better enable AABD to work with the banking agencies to assure a full understanding of the appropriate supervisory role of bank boards.
Bank directors who wish to join the Committee can complete our application.
Founded in 1989, the non-profit American Association of Bank Directors is the only trade group in the United States solely devoted to bank directors and their information, education, and advocacy needs. The Institute for Bank Director Education was established in 1993 as the educational arm of AABD. Its purpose is to act as a clearinghouse for education programs designed for bank and savings institution directors that support the nationally recognized AABD Director Certification Program. AABD has published, among other publications, the “The Bank Director Regulatory Burden Report”, the first public compilation of over 800 laws, regulations and federal banking agency guidance that impose various requirements on bank directors and their boards and board committees, and “FDIC Director Suits: Lessons Learned”.