Walker Review Recommends Extensive Reforms to Strengthen Bank Governance
John Kelly 270004J7VQ email@example.com | | 0 Comments | 149 Visits
In February, British Banker and former chairman of Morgan Stanley International, Sir David Walker was appointed to lead a government inquiry into corporate governance in the banking sector. This week, he published the Walker Review which recommends overhauling the boards of banks and other big financial institutions by strengthening the role of non-executives and giving them new responsibilities to monitor risk and remuneration.
“We need to get governance back to centre stage,” said Walker in a statement regarding the report. “The fundamental change needed is to make the boardroom a more challenging environment than it has often been in the past. This requires non-executives able to devote sufficient time to the role in order to assess risk and ask tough questions about strategy.”
The Walker Review proposes that most of the recommendations are enforced through inclusion in the Combined Code on Corporate Governance or a separate Stewardship Code for institutional investors, both operating on a ‘comply or explain’ basis.
It is clear that risk management will be under increasing scrutiny in the UK (and across the globe), and that the risk function will be increasingly important. To keep up with new regulation, companies will have to invest in systems to support the risk information sharing that such changes imply.
To access the Walker Review, click here.