Now you know the board plays a key role in a bank’s governance process and success. Directors work for the shareholders in overseeing the operation of the bank. Directors set the course and direction of the bank via its strategic planning, policies and procedures. Management works for the directors in running the bank on a day-to-day basis, implementing its policies and procedures consistent with the strategic plan. Directors monitor management’s performance through the various reports it receives. Together, directors and management identify, measure, control and monitor the bank’s risks. Given this, it is of prime importance that the board does its job well.