Human rights risks can affect firms
Financial services companies need to become more aware of the impact that human rights risks can have on their reputation and share value.
Link: Ahead of risk or a head of risk?
According to a report published today by F&C Asset Management and KPMG, financial services firms need to improve their risk management approach to projects and practices that may associate them with human rights violations.
It says an increasingly governance-conscious investment community should institute formal processes and regulations to help it manage the risks.
Mike Kelly, head of corporate social responsibility at KPMG said: ‘Financial institutions need to understand and manage human rights issues if they are to comply with future legislation, protect shareholder value and maintain competitive advantage.
‘New legislation and regulations – and institutional shareholders linking accountability, good governance, sound ethics and shareholder value – will force financial institutions to act on managing human rights risks.’