Failings in the areas of risk, reward, governance and ethics played a major part in creating the recent economic crisis. Businesses are under increasing pressure to balance risk and reward, and have recognised risk management, ethical business and good corporate governance as factors that underpin sustainable success.
The challenge for a responsible business is to ensure that the rewards it seeks are supported by sensible management of the risks that confront it. Key to meeting this challenge is how companies manage the risks that they face and how they measure value as they create it.
Management of behavioural risk should be interwoven with well designed regulatory mechanisms to ensure, as far as is practicable, that directors and executives act in accordance with the spirit as well as the letter of law and standards.
We are pursuing this agenda in our activities and on behalf of our members by promoting the concept of ‘public value’. This entails acting not only in the public interest but also in a way which delivers added value to stakeholders through, for example, good corporate governance, enabling access to finance or protecting clients’ wider interests.