The Institute of Risk Management (IRM) is pleased to see the new Financial Reporting Council (FRC) Corporate Governance Code places greater focus on risk.
This includes an explicit mention in Section 1 'Board Leadership and Company Purpose' as recommended in the response IRM submitted to the FRC earlier in 2018.
Section 1 states that the board should establish a framework of prudent and effective controls, which enable risk to be assessed and managed. The provisions further state that companies should describe in their annual report how opportunities and risk to the future successes of the business have been considered and addressed.
The new Corporate Governance Code adds greater impetus for all risk management professionals to take a leading role working with companies who follow the Code in addressing both current, emerging risks and opportunities.