When John Laker, the chairman of the Australian Prudential Regulation Authority, spoke to the Australian British Chamber of Commerce earlier this week he declared that "the main game" had moved on from regulatory change to improving governance. He also spelled out some of the steps APRA would, and wouldn't, be taking to achieve its goals in this area.He said much of the energy of supervisory agencies was now being devoted to promoting more effective governance in financial institutions, particularly risk management.Laker said: "We will be getting up close and personal with the boards [of financial institutions] and their key risk management personnel."He said more intensive supervision, rather than regulation, would deliver better outcomes. However, APRA is considering some regulatory changes.APRA has no specific prudential requirement for a chief risk officer position, but the issue is on the agenda. The role should be distinct from other executive functions, with no "dual hatting", and should have a direct reporting line to the chief executive.When it comes to the independent assessment of internal control systems, by internal audit or third parties, Laker said supervisory agencies already had well-established expectations. But these may be strengthened.He said: "APRA will be looking at ways to strengthen the independent assessment of risk governance. Assurance must be independent of business units and the risk management function.At the moment, assessments tend to be compliance-focused. He said supervisors have not expected audits to provide an opinion on the adequacy and effectiveness of the risk governance framework. Yet such an opinion is now being viewed as better practice by some supervisory agencies.APRA will also consider the need to add a requirement for an independent risk committee.Laker said there were some things APRA would not be doing. "The UK Financial Services Authority interviews candidates if they are being proposed for the role of chair of the board or of a risk or audit committee. APRA will not be going down that path. Such appointments are the prerogative of the board and shareholders."We retain a right to intrude if we have concerns."Some regulators attend board meetings but that was "not APRA's style".However, the Financial Stability Board has recommended that boards and supervisors meet at least quarterly.Laker said: "We are conscious of industry's concerns that APRA's requirements for boards may be too detailed and onerous, and require board involvement in areas that many would see as the preserve of management. We will be responding to these concerns where we see them as valid."