Who would have thought that a discussion around “risk” and a set of principles-based guidance could be such an engaging and – dare I say it – enjoyable topic? I proffer as evidence the cropped snapshot of a few of the attendees clearly having a great time!
Women on Boards UK, panel discussion on 27 April 2022
Fiona Hathorn hosted a Director’s Circle, Women on Boards UK event, on 27 April 2022 featuring Professor Bryan Foss who, amongst a portfolio of roles, is part of the Core Team of the Risk Coalition which authored and published this rich, yet understandable and applicable paper entitled Raising the Bar – Principles-based guidance for board risk committees and risk functions in the UK Financial Services sector.
Whilst aimed at the Financial Services sector, the principles can easily be proportionately applied to any organisation that believes in the importance of taking a more mature approach to present and emerging risks.
Given the increasing heavyweight importance of Risk Committees and the FRC’s support of this publication, I suggest that this publication should be considered essential reading for anyone serious about their personal corporate NEDucation.
Some key points arose from this engaging presentation and discussion:
The guidance is designed for the Board, Board Risk Committee, Chief Risk Officer and the Risk function. It’s a set of principles designed to allow an organisation to conduct a “self-check” in respect of its approach to operational risk and resilience.
Covid has taught us that consideration of new and emerging risks are essential topics to keep front of mind.
It is imperative that the organisation takes a bespoke approach to risk management that focuses on the long-term sustainability of the business (did anyone say directors’ duties?); it is unlikely, however tempting, that a tick-box approach to satisfy the regulators is the best way forward for any organisation
Take a collaborative approach to risk and ask your key stakeholders to help you spot risks on the horizon. Use the Board, front line staff, supply chain, market ecosystem etc to help you identify risk and provide help in the event of a crisis
Alternatively… go sit in that dark room and brainstorm everything that could go wrong
A wise organisation is one that has risk technicians AND a diverse group of people with different cognitive perspectives in the room when discussing risk
If you are on your boardroom journey – consider joining the Risk Committee (I did!); although the reading is likely to be heavy it carries the potential of allowing you a 360-degree perspective on the entire organisation (I agree!)
From a governance perspective – the Audit Committee and the Risk Committee have very different functions. If your organisation is developing in this area – probably start with an Audit committee, progress to an Audit & Risk and then finally separate them.
In my humble opinion, an expert is one that makes a tricky topic sound structured, sensible and eminently understandable – I thank Professor Bryan Foss for being that expert.
Nicolina Andall is Senior Corporate Counsel at Atlas Copco UK & Ireland and Aldermore plc’s first ever observer member of the Board. She is also an Independent Panel Member at the Ministry of Justice where she works with senior stakeholders on senior assessment panel recruitment campaigns.
You can listen to Fiona Hathorn and Bryan Foss discussing risk on their podcast recording via this link. Further information on Women on Boards UK can be found here.