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.
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
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Draft Guidance has been developed under the oversight, scrutiny and challenge of a Working Group – and with the benefit of input from our outreach programme.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 August 2019
Consultation closes - September 2019
Analysis of consultation responses - October and November 2019
Publication of final guidance and launch - 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 get involved in the consultation process, let us know.