The FRC has just published its well-flagged update to the UK Corporate Governance Code. It engages with topical pressure about executive remuneration and responsibility to stakeholders and is more explicit about the role of culture, bringing it more clearly into the body of the Code. It is a bit shorter than the previous iteration, which is nice. There is also a deepening of the focus on long-term sustainability. From a risk manager’s point of view, there are the following explicit additions:
The addition to the board’s responsibilities of the need to consider ‘emerging’ as well as ‘principal’ risks;
The need for specific consideration of the risks around director remuneration.
There is also a need for risk managers to review their activities in the light of some of the other changes. In particular, the consideration of risk should also be reflected in the alignment of purpose, strategy and culture and in reporting how stakeholder interests are addressed in decision-making. hashtag#risk hashtag#frc hashtag#riskmanagement
2018-UK-Corporate-Governance-Code-FINAL.PDF
frc.org.uk