An ECB report assessing governance and risk appetite in the euro area banking industry (following a thematic review conducted by the ECB) has identified elements lacking in the frameworks of many banks. In particular, the ECB identified the need for the independence of boards to be strengthened with a clear allocation of responsibilities, an increase in the collective knowledge of the board and the quality of debate on the board and allowing boards to independently challenge management. The ECB has also encouraged banks to implement risk appetite frameworks which are more consistent with their overall risk profile.