Is marketing the missing ingredient from the boardroom?
NEDonBoard is a supporter of the Risk Guidance Initiative.
Written by the Risk Coalition
Ten years on from the financial crisis, failings in financial services remain regular occurrences and the fines keep mounting. Inadequate risk governance and oversight is frequently at the heart of these issues.
Moreover, short comings in risk management are likely to take on greater significance as technology driven and macro risks emerge. The need for effective risk arrangements has never been more important.
Board members remark on the many unexpected company failings and comment on the wide variation in risk capabilities between firms they know. Chief risk officers also tell us about the wide-ranging remit that risk functions in financial services can have. All these factors point to the need for clear and authoritative principles-based guidance.
The Risk Guidance Initiative has emerged from this context of considerable change and challenge for risk committees and risk professionals. The development of the guidance is supported by The Risk Coalition, a network of professional bodies and membership organisations, including NEDonBoard, who are committed to raising the standards of risk management. Its development has been overseen by a Working Group of risk practitioners and professionals and has been informed by extensive outreach through interviews and roundtables.
This guidance is principles-based and does not attempt to provide detailed guidance for the management of any specific risks, recognising the risk profile faced by a firm can quickly change. Rather, it is for individual organisations to determine their risk strategy and risk appetite, and to identify and mitigate the threats which may derail the achievement of their strategic objectives.
In addition to the final guidance, we will issue a companion narrative piece, discussing relevant key risk topics and themes which have emerged from our outreach programme of interviews and roundtables and the feedback from the consultation exercise.
We welcome a wide range of views from all those involved at a senior level with responsibilities for oversight and management of risks. We also welcome views from investors and others as well as those outside financial services.
A consultation response document is downloadable from the Risk Coalition website. This includes a short set of questions, arising from the development of the guidance and our outreach activities, on which we would specifically appreciate the view of the NEDonBoard community, though you are not required to answer all the questions. You are also welcome to comment on any other parts of the guidance.
Not a member yet, join NEDonBoard, the UK professional body for NEDs and board members today. Please visit our website: https://www.nedonboard.com/become-a-member/. We look forward to welcoming you.
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