Governance

"Profit is the reward for taking risk". Frank Wright, Economist 1921

“In the future we will seek to make judgements on the judgements of senior management and take actions if in our view those actions will lead to risks to our statutory objectives. This is a fundamental change. It is moving from regulation based only on observable facts to regulation based on judgements about the future”. Hector Sants, Chief Executive FSA 2009

Displaying 1 to 13 of 13 results in total.

Related Documents

Liquidity policy - quick guide

30th July 2010

Building societies are expected to have an up to date liquidity policy statement. This will need board approval. What should your liquidity policy contain? NEDs may find this guide helpful.

Funding policy - quick guide

30th July 2010

Building societies are expected to have an up to date funding policy statement. This will need board approval. What should your funding policy contain? NEDs may find this guide helpful.

Policy Statement 10/5 Presentation

28th July 2010

This presentation was delivered to non executive directors of building societies on 27th and 28th July 2010. It is about the new sourcebook and how it affects a society's treasury.

What's your appetite for stress testing?

16th June 2010

A lot's been written about the board's appetite or tolerance for risk. But very little has been said about what this means. Perhaps this will help.

What's your risk appetite?

12th June 2010

The regulator is asking boards to define their risk appetite and risk tolerance. Whilst this insistence may be reasonable it certainly doesn't make it any easier to do. Just how do you measure the level of risk you have and then how do you relate that to your firm?

Liquidity risk in a nutshell

10th June 2010

Depositor confidence in the banking system is crucial. It's why banks borrow short term and lend long. Damage this sentiment and the size of cash withdrawals will threaten individual banks and the system as a whole. Hence the new regulatory measures being taken to ensure banks hold sufficient liquid resources to meet just about all eventualities. This is a very brief explanation of the new liquidity regime.

Risk limits

22nd February 2010

You may be thinking about reviewing or changing your risk limits. But before you jump straight in it's worth taking stock. After all badly designed risk limits and poor operational processes will just add to your problems. Let's look at some of the issues you need to consider.

Governance > CP10/3 Effective corporate governance

12th February 2010

As a result of the crisis the FSA has identified shortcomings in the way firms are governed and the way in which risk is managed. Whilst most would agree with these comments from the regulator, drafting policy to improve things is a difficult issue. One of the main problems the FSA faces is that not all firms are identical. Therefore policy must be relatively broad but at the same time flexible. An additional problem for policy makers is that governance and to a lesser extent risk is subjective. The FSA treads a fine line in 10/3 between prescriptive regulation and principal based regulation. NEDs in particular should take note of its contents. Let's look at some of the issues that are raised.

Governance > The regulatory impact of Walker

14th December 2009

The final recommendations of the Walker review were published on 26th November 2009. There are 39 recommendations The following paraphrases 6.1-6.12 of the report and considers what it means for the governance of risk and boards facing the regulator.

Governance > Walker review consultation

1st July 2009

The Walker review A review of corporate governance in UK banks and other financial industry entities This is an independent review led by Sir David Walker into the corporate governance of banks. A consultation document was published on 16th July 2009. There are 39 recommendations. This is a summary.

Governance > NEDs an onerous position

9th April 2009

As you will know the Turner Review and Discussion Paper 09/2 from the FSA indicate that the financial services industry in the UK will be facing much more intrusive regulation. Furthermore H.M. Treasury has asked Sir David Walker to lead an independent review of corporate governance in the UK banking industry. What does this mean for you?

Management information & training for boards

2nd April 2009

This presentation is about treasury, management information and training for boards. It was presented to executives and NEDs of banks and building societies in April 2009.

Governance > Turner review

30th March 2009

The Turner Review: a regulatory response to the global banking crisis was written by the Chairman of the FSA at the request of the Chancellor of the Exchequer. It reviews the crisis and recommends changes to regulation. The review is 122 pages. These are the main points.