Guide on risk compliance of UK Corporate Governance Code

The Institute of Risk Management (UK) has produced new guidance on compliance with the risk sections of the UK Corporate Governance Code.  The IRM argues that while compliance with the Code is a key target for companies, there has been ‘precious little’ in the way of ‘sound practices’ in what has ‘for too long been a nebulous subject’.

The Guides will form a helpful resource for Boards of Directors, Corporate Professionals and Practitioners in New Zealand as they advance greater understandings and assess the complexities of managing and measuring risk.

The IRM guidance aims to provide practical advice to help boards in ‘determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives’ as stated by the Code. It provides details of what questions a board should be asking to determine its risk appetite and, subsequently, what a board should be doing to measure and control risk.

The IRM makes the point that while the guidance should not be considered the ‘as the last word on the subject’, and that thinking on the subject will be ongoing, the guidance should provide some direction in coming to terms with the ‘massive challenge’ of properly managing risk appetite.

The Executive Summary, aimed at board members, is available … READ MORE   A more detailed version for those that provide advice to boards is available … READ MORE as outlined in ICSA Newswire 23 September 2011.