ABSTRACT
This chapter looks at the way in which the regulations and codes relating to corporate governance, internal control, and risk management have developed concurrently, and outlines that regulations are just the starting point for good governance. Regulators therefore see risk management as a core component of corporate governance, and this is also widely recognised within the academic literature. The financial crisis drove changes in governance regulation within the financial services sector that have since begun to spread across into non-financial sectors. The chief risk officer (CRO) reports directly to the risk committee and chief executive. This legislation, like that relating to risk committees, largely mirrored the recommendations contained within the Walker Review in the UK, which called for the financial regulatory authorities to review and strengthen the role of the CRO in banks and major financial institutions.
