Risk governance moves up the FSB agenda

The Financial Stability Board, tasked with coming up with means of preventing future financial failures in the Group of 20 nations, has issued a call for ideas that put the governance of risk higher up the list of priorities at financial institutions. "The global financial crisis highlighted a number of corporate governance failures and weaknesses in financial institutions, including inappropriate Board structures and processes, weak risk governance systems, and unduly complex or opaque firm organisational structures and activities," it said. It is conducting a thematic review of risk governance, using its "peer review" process, in which experts from one (or several) states examine the practices underway in others. The review will look specifically at board responsibilities and practices, how the risk management function works, and the role of audit and assurance in risk governance. It's a short consultation. Responses, please, by May 12.

Source document: The FSB statement is a 26-page pdf file.