July 8, 2026

As a lecturer at ISFB for the Certificate in Governance and Risk Management for Board Members, Hervé Broch points out that a bank’s board of directors does not create value through its operational involvement, but rather through the quality of its judgment, its questions, and its independence. In his view, governing a bank requires a certain mindset: understanding the bank’s mission, respecting the role of management, engaging in clear debate, and keeping the institution’s long-term sustainability in mind.

Hervé Broch, you are speaking as part of the first module of the ISFB Certificate in Governance and Risk Management for Board Members, specifically on the governance of a board of directors. What does a bank director need to understand before even delving into risk-related topics?

Before discussing risks, a board member must understand his or her primary mission: to ensure the bank’s long-term viability. His or her role is not to manage the institution, but to set its strategic direction, oversee its governance, and ensure that management has the necessary framework to execute the strategy. Risks only make sense when viewed in the context of this overall vision.

You are a bank executive, an ACAD-certified director, and a board member. What has this dual perspective—as both an executive and a non-executive—taught you about the true role of a board of directors?

This dual experience has taught me that a board of directors creates value first and foremost through the quality of its judgment and the questions it asks. A good board is neither passive nor operational. It provides a broader perspective, challenges strategic thinking, and supports management while maintaining its independence.

In a bank, the line between the board of directors and management must be clear. How can a director fully carry out his or her role without encroaching on that of the executive branch?

Board members should focus on the “what” and the “why,” while management handles the “how.” Their role is to understand, ask questions, and make decisions—not to carry out tasks. Good governance is based on this balance between oversight, strategic support, and respect for each person’s responsibilities.

Independence, diversity, transparency: these principles are often cited. How can we put them into practice in boardroom discussions, especially when decisions are sensitive?

They become a reality when each board member dares to express an independent point of view, even if it is a minority opinion. Diversity enhances the quality of decisions, and transparency makes it possible to address difficult issues without complacency. The best boards are those where debate is open, respectful, and focused on the institution’s best interests.

What do you want participants to take away from your presentation: a better understanding of the role of a director, a governance mindset, or a personal commitment to the responsibilities of serving on a board?

Above all, I would like them to understand that serving as a bank director is a responsibility, not an honorary title. Of course, they will gain tools and knowledge, but the most important thing is to develop the right mindset: to be curious, well-prepared, independent in their judgment, and aware of how their decisions impact the bank’s long-term viability.

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Hervé Broch

Chairman of the Management Board of Raiffeisen Bank, Geneva-Rhône Region; Co-Chairman of the Geneva Federation of Raiffeisen Banks (cantonal) of the Raiffeisen Group; Chairman of the Board of Directors of Servette FC 1890

Lecturer ISFB

A position on a bank's board of directors is a responsibility, not an honorary title.

Hervé Broch