Banks with a strong culture of risk management and ethical business practices are less likely to experience potentially damaging operational risk events and are better placed to deal effectively with those events that do occur. The actions of the board and senior management, and policies, processes and systems provide the foundation for a sound risk management culture. More details on the role of the board and senior management are to be found in Chapters HC-1, HC-2, and HC-6 as well as in Chapters CM-1 and OM-2.