|
The Financial Reporting Council (FRC) has published it’s revised UK Corporate Governance Code which is applicable to all UK listed companies. The purpose of the Code is to provide guidance for organisations on their stewardship, and in these difficult and challenging economic times, the time was ripe for a review.
The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company. Clearly, a fundamental aspect of this is effective risk management and the Code identifies an organisation’s Board as responsible for ensuring this is carried out.
The board is responsible for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives. The board should:
· maintain sound risk management and internal control systems
· Establish formal and transparent arrangements for considering how they should apply the corporate reporting and risk management and internal control principles
· Maintain an appropriate relationship with the company’s auditor |
|
Revised UK Corporate Governance Code reinforces the need for risk management |
|
© R!sk Matters Ltd 2011 |
|
because risk matters |
|
r!sk matters
|
