As the fallout from the Silicon Valley Bank (SVB) collapse continues to play out, the banking sector remains resilient and affected businesses are managing through the short-term challenges. Although it’s too soon to know what the long-term impact will be on banks and their clients, some important lessons are emerging.

Chief among them: Regulation can never eliminate market risk or poor decision-making. Good governance is always a must, and one prime component of this is having a clear and well-designed investment management policy. Even for smaller organizations, this should be an integrated part of financial and corporate governance.

If your board of directors hasn’t already asked to review your investment management policy, you should be prepared for a call. Now is an optimal time to take proactive steps to strengthen your policy to ensure your company’s long-term stability.