- August 22, 2017
- Posted by: Zina Smith
- Categories: All News, CT Blog, Reports
High preforming boards use a variety of methods to scan a wide horizon of risks, and to keep their risk maps relevant. These include:
- Regularly making space for whole-Board debate on risk identification, appetite and controls;
- Periodically refreshing the experience around the board table with current expertise from a range of arenas;
- Hearing from peer networks, trade bodies, sector press and conferences;
- Learning from the organisation’s own experiences of risk crystallisation, by seeking Audit Committee assurance that any related, wider, systemic exposures are identified and controlled;
- Learning from the experiences of others via the regulator’s published regulatory judgements and the periodic Campbell Tickell-authored Learning From Problem Cases;
- Implementing adequate delegation and escalation procedures; and
- Triangulating with other sources such as complaints and whistle blowing, to ensure that the right bubbling-under risks come to the attention of the Board.
Another powerful tool for raising the Board’s eyes above your organisation’s day-to-day worries is the annual HCA Sector Risk Profile (SRP). The 2017 edition which was published at the end of July builds on the regulator’s detailed knowledge of risk crystallisation across the sector, and their regular discussions with rating agencies, lenders and investors. It certainly makes for very interesting reading.
Many associations circulate the SRP to their Board members. Others look to discuss those highlighted risks to which they are exposed and amend their risk maps where appropriate.
This year Campbell Tickell is publishing a check list to facilitate this exercise by supporting risk, assurance and governance leads to provide Boards and Audit Committees with assurance that they are tracking all the risks identified in SRP17, and have adequate mitigation in place for those to which they are materially exposed.
Please don’t be put off by the number of risks identified (58 in total)! Many will not apply to your organisation and for others the scale will be truly negligible. Furthermore, we offer some helpful tips on completing the checklist.
Do let us have your feedback on the usefulness of the checklist and how we could look to improve it for next year.
For assistance in facilitating Board challenge; reviewing your risk management framework and registers; or controls and assurance reporting please contact Sue Harvey at firstname.lastname@example.org or call 020 8830 6777.
[Please note this is not an exhaustive list of risks that the sector or an individual provider faces. Rather it highlights those risks identified in the HCA’s Sector Risk Profile 20173. Boards will of course look to assure themselves of the controls in place to mitigate the specific risks that their organisation is facing.]