Risk governance: how much value does it add?

Does risk governance add much value or is it little more than a necessary evil? Do the increasingly large sums being spent on it help investors or is this done mainly for compliance reasons? A seminar on risk governance hosted by The NED tried to answer these and related questions.

Peter Cripwell, CEO, RiskSystem said that there is no agreed concept of what is an appropriate level of risk governance – over and above the basic box ticking function. There should at least be agreement on what is the minimum required level of information to allow a board to make proper evaluations of the responsibilities that they have. Boards should worry more about risk and less about VaRs. He reminded everyone that on risk, ‘the buck stops at the board’.

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