Focus on Governance Driving Weightier Board Materials
The increasing weight of corporate governance, more stringent regulatory processes and outdated structures are preventing boards from adequately engaging in and setting appropriate risk management cultures within their organisations, according to a Thomson Reuters survey.
The information services group said that as regulators demand greater risk oversight, its survey found that one in four boards are not actively engaged in this process, often hampered by time constraints and the significant pressures associated with reviewing an increasing number of board materials.
The survey covered more than 125 general counsel and company secretaries over a cross-section of industries and geographies globally and builds on a survey of similar respondents conducted in September 2011 so presents year-on-year trends and developments. Key findings from the latest report include:
“Corporate governance is becoming ever more complex due to the fluctuating economy, increased regulatory requirements and greater regulatory scrutiny,” said Mark Schlageter, managing director, governance, risk and compliance, Thomson Reuters.
“This is placing increased responsibility on the board of Directors and greater demands on accountability and transparency. It is therefore essential that boards have all the strategic business and industry intelligence they need at their fingertips to ensure they understand the entire picture when making decisions and to have better risk oversight across their organisation.”