Risk takes centre stage

A renewed focus on risk management is rising from the ashes of the financial crisis

Global and national regulators are redoubling their efforts to ensure that financial services companies put risk management and corporate governance at the heart of the business. Hector Sants, chief executive of the Financial Services Authority (FSA), said senior management will be held accountable for mis-judgements that put firms at risk and called on non-executive directors to “raise their technical skills” and challenge board level decisions. “Ultimately, they will need to demonstrate competence with regard to risk management, regulation, and - importantly - the business model of the firm,” Mr Hants said.