Better skills essential to deliver growth and avoid crises
By Daniel Hunter
A new guide to business risk, published by the Institute of Directors (IoD) in association with Airmic, Chartis, PwC and Willis, urges UK Board members to improve their understanding and management of risk in order to successfully deliver growth and prevent future crises.
Business Risk — A practical guide for Board members features contributions from a range of expert authors from across business and academia, and makes the case that:
· Risk — and particularly strategic risk — are more important elements of a director’s job than they have ever been
· Despite large amounts of media space having been devoted to the allocation of blame for the financial crisis, there remains much practical work to be done hardening companies in order to prevent future risk failures
· Understanding how to assess risk at board level, and understanding how the Board should interact with risk professionals, are essential skills for all directors
Risk is an inherent and inevitable element of making decisions and developing a business. The Guide seeks to inform non-executive directors about how to avoid pitfalls, gain access to crucial information and ultimately bolster decision-making in order to mitigate unnecessary or excessive business risk.
The authors lay out in detail the roles and responsibilities of the board in assessing and managing business risk, the risk challenges currently facing UK businesses and the structural, personal and strategic solutions which can be used to address these challenges.
Simon Walker, Director General of the Institute of Directors, said:
"If companies and the economy as a whole are to grow in today's environment, it is vital that directors put risk management at the heart of business strategy. Understanding risk helps you to become more enterprising without jeopardising your business. On... continued on page two >