President highlights importance of business risk management David Furst, Chairman of Horwath Clark Whitehill and President of the Institute of Chartered Accountants in England and Wales has said:
| Risk management has often been viewed as a bureaucratic 'compliance' exercise needed to meet the annual reporting requirements in codes of good practice such as the Turnbull Guidelines, for listed companies. However, with continued corporate scandals (such as Northern Rock's |
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| funding crisis, BAE Systems corrupt practices and Société Générales’s trading fraud) and with the new 'Business Review' disclosure requirements on business risk, there is increasing personal motivation at board level to establish a risk management framework that is clear, sustainable and fit for purpose. |
Risk management is not just about considering the things that 'can go wrong', it must be about maximising business opportunities - seeking to turn a thorough understanding of the risks that an organisation faces into competitive advantage. Effective risk management can help to improve company performance through promoting and supporting a more transparent and rigorous decision-making process across the business.
Read more in our latest issue of 'Corporates Quarterly'.
For previous news from the ICAEW president, click here.
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