Recent corporate collapses such as BHS and Carillion have put "going concern" statements in the spotlight. New guidance will make non-executive directors—especially those on the audit committee—part of the assessment.
The data breach involving 87 million Facebook users and Cambridge Analytica, the data analytics firm, was a “profound failure of governance” within the social media business, according to a committee of UK MPs.
An increased focus on risk and compliance for financial services firms has led to a rise in committees, reporting and key performance indicators. But boards must ensure that short-term targets do not hamper long-term strategic vision.
The boards of global financial institutions must have the expertise, diversity and operational understanding to ensure effective oversight, but they must start by setting the company's culture and strategy.
The unprecedented pace of regulatory change in the financial services industry has led to substantial investment in the compliance function, but it needs greater support at board and executive levels in order to be effective.