KPMG Survey: “Risk and strategy ‘two sides of same coin’ but many Boards failing to make the link”
Corporate Boards are deepening their involvement in company strategy and refining their oversight of the critical risks facing the business, but there’s “still work to be done” if organisations are to meet the challenges set by the 2014 UK Corporate Governance Code. That’s according to the outcomes of a new survey conducted by KPMG’s Audit Committee Institute.
Compliance with the Code’s guidance on risk management and internal control requires inter alia that Boards make a robust assessment of the principal risks to companies’ business models and ability to deliver on their strategies. However, while many UK Audit Committee Institute members said their Board had increased its involvement in strategy formulation (67%), monitoring strategy execution (62%) and focus on technology issues including cyber security (51%), only half (51%) were satisfied that risk and strategy were effectively linked in Boardroom discussions.
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