Answer: Evaluating the compensation strategy for the bank's senior executives

**B is correct.** The board must evaluate the firm's performance metrics and compensation strategy. It has the critical responsibility of making sure executives are compensated based on their risk-adjusted performance and that the incentives inherent in such compensation do not clash with shareholder interests. **A is incorrect.** The board has overall responsibility for the bank, including approving and overseeing the implementation of the bank's strategic objectives, governance framework and corporate culture. However, the actual implementation and execution responsibilities are performed by senior management, not by the board of directors. **C is incorrect.** The bank's senior risk committee delegates the power to make day-to-day decisions to the CRO. This includes the ability to approve risks exceeding preset limits imposed on the various business activities, provided these exceptions remain within the bounds of the overall board-approved limits. **D is incorrect.** All organizations must strike a balance between ensuring they can achieve their objectives and maintaining risk standards. The CRO is responsible for independently monitoring these standards on an ongoing basis.

Author: LeetQuiz .