Risk Guidance Initiative

What is it?

The Risk Guidance Initiative is a project to develop high-quality, principles-based guidance for board risk committees and risk functions, to address the challenges of today’s changing and challenging environment. The Guidance is being developed through industry consultation and drawing on best practice.

Our aims

  • Develop a common understanding of the purpose and remit of board risk committees and risk functions

  • Raise expectations and promote good practice of risk oversight within UK financial services

  • Provide a benchmark against which board risk committees and risk functions can be objectively assessed

  • Fill a gap, given the absence of authoritative, principles-based risk guidance currently available

The Guidance

  • is principles-based, focused on improving outcomes

  • is applicable to overseeing the broad range of risks that an organisation faces

  • is capable of being proportionately applied by organisations of different sizes

  • is not prescriptive, so avoids detailed requirements on how to oversee and manage risk

The Guidance will be focused on financial services, but we expect the principles we establish will be relevant to non-financial services organisations and to other sectors.

How is it being developed?

The Guidance is being developed through industry consultation:

  • Overseen by a Working Group comprising risk committee chairs, chief risk offices, advisors and academics

  • Outreach with a wider range of board members, risk professionals and interested parties through structured interviews and roundtables

  • Engagement with investors and regulators

  • Formal consultation, open to a wide range of respondents

  • Led and project managed by an expert Core Team

When will it happen?

The Risk Guidance Initiative is well advanced.

Draft guidance has been developed under the oversight, scrutiny and challenge of a Working Group – and with the benefit of input from our outreach programme. The next stage will be a formal consultation, before the guidance is finalised.

Start of formal consultation process - June 2019

Roundtables, interviews and further engagement - June to October 2019

Consultation closed - September 2019

Analysis of consultation responses - October and November 2019

Publication of final guidance and launch - 4 December 2019

(Note: timings are subject to change)

Alongside the publication of the final Guidance, the Risk Coalition will also publish an accompanying narrative publication that draws out key themes from the consultation and outreach exercises, and also provides examples of ‘best practice’.

If you would like to feedback or comment, let us know.