Independent Audit Limited

"Getting it right"

The crisis in the financial markets has forced governments and regulators to look again at the role of boards in risk-taking and overseeing risk management.  For financial institutions this has resulted in the initial proposals in the Walker report.  But how will non-financial services companies be affected?  How far might they be caught up in changes directed mainly at the banks?  What is common practice outside financial services – and is change needed?

The ICAEW Foundation, working together with the FRC, commissioned a major research project which was conducted by Independent Audit Limited.  This has broken new ground in building an extensive picture of how boards and senior management make sure that risk management is working well and that boards are doing what they need to do. 

Key findings relate to questions such as: 

what exactly is risk governance?
what makes it effective?
what should NEDs be spending more of their time on?
what are the most common potential weaknesses?
what are the main sources of comfort for NEDs?
what can executives do to improve things?
what are the implications for the review of the Combined Code?
do any of the recommendations in the Walker Review have relevance to corporates?

Read the full report here: "Getting it right"