When they report in 2019, UK private companies of a certain size will have to explain their governance arrangements in greater detail than before.
Boards are expected to manage an ever-evolving list of responsibilities. Having boards more immersed in different areas of concern is very much welcomed but the challenge of staying focused on their core responsibilities must be addressed.
In 2016, during her campaign for the leadership of the Conservative Party, Theresa May spoke about “making Britain a country that works for everyone, not just the privileged few”. To achieve this, she proposed requiring listed companies to appoint employee representatives on the board.
Along with the implementation of the 2018 UK Corporate Governance Code, new reporting obligations under section 172 of the UK’s Companies Act 2006 have been introduced under the Companies (Miscellaneous Reporting) Regulations 2018.
Red flags that could be indicators of potential negative consequences for the company's long-term prosperity and shareholder value creation.
Banks recognise the importance of tackling cybersecurity risks and spend billions of dollars to this end, however, their boards lack the necessary expertise to oversee cyber risks.
Banks are shifting away from viewing climate change risks solely as a corporate social responsibility issue, as they understand their financial implications.