This paper examines how governance and risk management affect risk-taking in banks. It distinguishes between good risks, which are risks that have an ex ante private reward for the bank on a stand-alone basis, and bad risks, which do not have such a reward. A well-governed bank takes the amount...

The new economic reality of heightened international competition, constant technological change, and cross border migration flowsreferred to in shorthand as globalizationʺhas upset traditional forms of governing capitalist economies. Nation-states were once considered the only appropriate scale...