Major scandals have traditionally been a precursor for regulators, companies and governments to rethink their approaches to corporate risk. It took a seismic event for risk approaches to be altered and for new protective measures to be adopted.
In the early nineties, the collapse of FTSE 100-listed textile group Polly Peck, the Mirror Group pension scandal and the liquidation of BCCI led to the formation of the UK Corporate Governance Code.
More recently, the 2008 financial crisis, which claimed Lehman Brothers, Northern Rock, Bradford & Bingley and many others, saw the code revised and radical changes to how risks are assessed within financial institutions.
Given the scale of the 2008 crisis, it is perhaps no surprise that the role of the chief risk officer (CRO) is currently more…
