The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

Emerging risks: The UK Corporate Governance Code Revisions 2018

October 2018

Implementing an effective risk management framework within an organisation remains a key part of the corporate governance expectations in the revised UK Corporate Governance Code 2018.

In addition, however, the latest revision introduces a new requirement to:

  • Carry out a robust assessment of emerging risks as well as principal risks
  • Explain in the annual report what procedures are in place to identify emerging risks
  • Explain how these risks are being managed or mitigated.

We look at how an organisation can identify emerging risks, and propose questions boards and their committees should raise to satisfy themselves that these are included in their risk approach.

Five questions on emerging risk for the board and its committees to consider

1. Is there a clear definition of what is meant by an emerging risk, and is this understood?
2. Has a pragmatic approach to managing emerging risks been identified?
3. Are proactive risk behaviours encouraged in line with the organisation’s values?
4. Are you comfortable that you have sufficient oversight over emerging risks and what they mean for the organisation’s strategy?
5. Are there clear processes and criteria in place to elevate risk information to the board quickly?
EY - Emerging risks: The UK Corporate Governance Code Revisions 2018

Emerging risks: The UK Corporate Governance Code Revisions 2018

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Managing emerging risks should be incorporated into existing risk approaches and give stakeholders the assurance that risk information is influencing strategic decisions – and ultimately driving bottom line value.

Contact us to find out more

EY - Rob Walke

Rob Walker
Partner, EY Risk
+44 (0)118 928 1218

EY - Samit Bhat

Samit Bhat
Associate Partner, EY Risk
+44 (0)20 7951 0652

EY - Emma Price

Emma Price
Director, EY Risk
+44 (0)117 981 2108