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The Risk Coalition’s upcoming principles-based guidance for board committees is set to be published this October; ahead of the much-anticipated publication date, their consultation offers an insight of what’s to come, and seeks to gain views and feedback from NEDs.
“Corporate mishaps, misbehaviour and failures remain all-too-common occurrences, with inadequate risk governance and oversight often at the heart of these issues. Good risk management, however, is more than just about stopping bad things from happening. It is about enabling an organisation to achieve the things it wishes to achieve, through the effective management of risks.”
Nearly five years ago, the Risk Coalition published ‘Raising the Bar’, its seminal guidance for board risk committees and second line risk functions in the UK financial sector. It remains internationally recognised, serving as a gold standard for good practice in financial sector risk governance and oversight. This October, the Risk Coalition will be publishing its new guidance, ‘Raising your Game’.
The latest guidance aims to help boards and committees understand what leading risk governance looks like, and consequently what steps they need to take to improve the quality and effectiveness of their organisation’s risk arrangements.
With applications across financial, commercial, public and not-for-profit sectors in the UK and globally, it seeks to provide clarity of purpose and values for any sector or jurisdiction. Supported by clearly articulated strategy, aims and objectives, it will be directed towards actionable plans and mitigations.
This recent consultation is the culmination of 18 months’ research and outreach by the Risk Coalition; it provides the outlines of a robust, principles-based framework centering around eight key principles, namely:
- Board accountability
- Committee purpose
- Committee composition and membership
- The organisation’s approach to risk
- Risk culture and behaviours
- Navigating risks and exploring opportunities
- Risk management and internal control systems and reporting
- Independent risk oversight and challenge
The aim of the consultation is for the public to challenge and improve the text ahead of its planned publication in October 2024. It therefore serves as an exciting opportunity for NEDs to have their views heard and directly contribute to what will no doubt be seminal work for boards.
Learn More
To download the full consultation, and submit responses, follow the link here.
The consultation closes on Monday 16th September, although the Risk Coalition will aim to consider late responses as far as practicable.
About the Risk Coalition
The Risk Coalition is a not-for-profit, risk management think tank that aims to improve the effectiveness of risk management. It is supported by a network of professional bodies and membership organisations with an interest in raising standards of risk management - and corporate governance more broadly - in the UK and globally.
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