Somewhere on the road between governance and management, someone needs to determine what the requirements are. Then management develops ways to meet those requirements (whether they be legal or corporate), and to test and report how well the company is meeting those requirements.
But how can management do that if the requirements aren’t clearly stated? How can you govern to squishy requirements?
“New Kind of Stress Tests Big-Bank Outlook,” Wall Street Journal, December 30, 2013 (online)
The Federal Reserve is reportedly keeping the “real measures” of the stress tests to themselves, and not letting the banks or the investors know what they are.
Is this a failure of governance, or something else?