ABSTRACT
Risk is the life blood of capitalism but its management is essential for long-term success. Control Risks Group is a private limited company which has developed out of a consultancy business, specialising in personal security overseas, into a global risk management adviser. Focus lists are issued to publicise corporate governance weaknesses of individual companies with a view to forcing remedial action. Hermes has codified what companies and active shareholders should expect from each other in 'The Hermes Principles'. Companies should seek an honest, open and ongoing dialogue with shareholders. Hermes has had a long relationship with CALPERS which helps to develop thinking and share experience. Delays in garnering support for the financial accounting standards board (FASB) have not helped but CALPERS has been very active in driving for change. This chapter suggests that corporate governance is still not integrated into the investment policy in many cases.
