Much Ado about Risk Governance: An Examination of U.S. Bank Holding Companies’ Risk Management and Oversight Practices after Dodd-Frank
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The 2010 Dodd-Frank Act requires large bank holding companies (BHCs) to implement strong risk governance structures. Utilizing a difference-in-differences design that exploits BHCs’ staggered adoption of the new rules, this study examines whether the mandates have affected bank risk. I find no evidence of a relation between board-level risk committees and bank risk. I then construct a summative measure of risk governance quality, the Risk Governance Index, that incorporates board-level risk oversight and functional risk management activities. Results using this measure are weakly suggestive that the Dodd-Frank risk oversight and risk management requirements have been moderately effective at reducing bank risk.
Subjectbank holding companies
Milbach, Lauren Nicole (2019). Much Ado about Risk Governance: An Examination of U.S. Bank Holding Companies’ Risk Management and Oversight Practices after Dodd-Frank. Doctoral dissertation, Texas A&M University. Available electronically from