Boards On Notice Regarding Non-Financial Risks

On Wednesday, ASIC released a report looking at director and board oversight of “non-financial risk”. After examining the big four banks, AMP, IOOF and Insurance Australia Group, and conducting over 60 interviews with directors and management, it found that key shortcomings included fractured communication, a lack of accountability, and management operating outside of approved compliance risk appetites. The review is part of a wider investigation by the regulator, seeking to identify weaknesses in both company structures and culture that contributed to unscrupulous and damaging behaviour highlighted by the Royal Commission.