In 2011, Oliver Wyman published a paper setting out eight “New Years’ Resolutions” for the BRC. At that time many firms had only recently established a dedicated Risk Committee for the Board, and fewer than one in three firms surveyed had BRC members who could list financial services risk management experience on their CVs.
Fast forward to 2018 and although a great deal has been improved, there is still much work to be done. BRC meetings are often exhausting, jam-packed marathons of reviewing lengthy reports and ticking regulatory boxes, as institutions struggle to meet ever more expansive governance requirements and regulations. Under pressure, Non-Executive Directors (NEDs) must ensure they focus not only on regulatory compliance but carve out enough time to engage in meaningful strategic discussions around risk / return trade-offs.
Here we look at progress made since our 2011 report and offer four practical ways in which institutions can better leverage the expertise and experience of the BRC.
Four ways in which institutions can better leverage the expertise and experience of the BRC: