Intro to Mortgage Origination Examinations Training - July 2025

Internal Use Only

6. Risk Management Function CRO should: • Stature, authority & skills

• Independence • Board reporting • Access to Board • Board or risk committee:

• Appointment, dismissal or changes • Performance, compensation & budget

Internal Use Only

Knowledge Check #1 According to corporate governance principles, the board of directors should primarily be responsible for: A. Day-to-day operations B. Hiring middle managers C. Approving marketing budgets D. Overseeing management and ensuring accountability to shareholders