Explanation:
According to the Basel Committee's principles for the Sound Management of Operational Risk, providing guidance to the bank's staff regarding operational risk management is a direct responsibility of Senior Management, not the Board of Directors. The Board's role is more foundational and oversight-based: to establish, approve, and review the framework, ensure independent review, and oversee senior management to ensure best practices are followed. Therefore, B is the least likely task for a director.
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Q.38 Tom Mathews has been appointed as a director of a multinational bank. With respect to principle 3 (board review and approval of Operational Risk Management) of the Basel Committee principles for the Sound Management of Operational Risk, Tom Mathews as a director should least likely ensure that the board of directors perform which of the following?
A
Regularly review the operational risk management framework.
B
Provide the bank’s staff with guidance regarding operational risk management.
C
Ensure the ORM framework is subject to independent review.
D
Ensure that management follows the evolution of best practices.