The Risk Coalition brings a useful Guidance to plug a gap in Board Governance: prior to the publication of Raising the Bar, there had been no comprehensive principles-based guidance for risk committees and risk functions.
The guidance emphasises the importance and seniority of a Chief Risk Officer (CRO) or equivalent, as well as their independence.
Risk committees and CROs can and should aggregate and communicate risk information from across a business and its environment to the board. There should be one holistic view for the Board.
Such principles should not feel new or revolutionary to anyone working or having worked in a Risk Department of a major Financial Institution… but how often have sound principles been trampled over or ignored before some of the major crisis of the last 50 years? Rising the Bar should be used by all Boards and Management Committees to clearly set those guiding principles into stone and leverage the insights provided by Risks in order to make informed decisions. In the UK and everywhere else.
Access the Guidance through this link: https://www.riskcoalition.org.uk/the-guidance