Risk governance: does it add value?

What can boards do to be more forward-looking in their risk oversight? And how should they cover issues that impact funds from outside the day to day, up and down of markets?

Given that every fund is different it follows that the risks they face are not the same either. But they all have some sort of risk and it is not clear that every board is on top of what these might be – at least outside the day to day issues that markets routinely encounter.

The NED has hosted a number of debates on risk governance over the years. No one who has spoken at these events thinks that the way a board should deal with this topic is just to focus on the numbers. Just verifying that the fund’s portfolio management team has stayed within its risk limits is the rear-view mirror approach to risk oversight. That is the easy bit.
To read more on this story see the November issue of The NED.