Accounting concerns grow for FTSE500
The 500 biggest listed companies in the UK believe that business risks have grown over the last 12 months, with concerns about accounting, legal, regulatory and finance issues registering the biggest increases.
Link: Turnbull code to be updated next year
Nearly all respondents (91%) said they were compliant with the Turnbull guidance on risk management and internal control and more than half said they reviewed risks at board meeting or once a quarter.
Top of the list of concerns was business reputation, the survey by the ICAEW and The Risk Advisory Group found, based on a survey of directors and senior managers at 86 companies within the FTSE500.
The survey also found that finance directors, heads of audit and CEOs have the highest level of engagement in the risk management process.
Bill Waite, chief executive of The Risk Advisory Group, said: ‘We weren’t surprised to see a rise in the perceived levels of risk among businesspeople – but we were surprised to see such consistent growth in all but one category.’
‘The key difference with last year was in the level of engagement with risk management by Boards in these companies.
‘Businesses are clearly treating risk management more seriously.’