The bank’s internal control structure is essential to the capital assessment process. Effective control of the capital assessment
process includes an independent review and, where appropriate, the involvement of internal or external audits. The bank’s
board of directors has a responsibility to ensure that management establishes a system for assessing the various risks, develops
a system to relate risk to the bank’s capital level, and establishes a method for monitoring compliance with internal policies.
The board should regularly verify whether its system of internal controls is adequate to ensure well-ordered and prudent conduct
of business.