Revised Corporate Governance Code imposes duty of risk management on Boards

The Singapore Corporate Governance Code 2012 Briefing shed new light on the role of directors and members of the board. Traditionally perceived as the audit committee’s responsibility, the new Code includes a formal statement on the board’s responsibility to manage risk.
The half-day briefing, jointly organised by RHTLaw Taylor Wessing LLP, Singapore Institute of Directors (SID) and KPMG Advisory LLP, was well attended by over 90 members of SID, who comprise key management and board members of listed companies in Singapore. Speaker Mr Tan Chong Huat, Managing Partner and Head of the Corporate and Securities Practice of RHTLaw Taylor Wessing, shared on the key changes to the Code as well as recent case studies.
Also speaking at the event was Mr Irving Low, Head of Governance, Risk & Compliance Services at KPMG Advisory, who shared on the challenges firms might face in putting into place a proper risk management system. In particular, he cautioned that of all the internal risk controls laid out by the new code, operational risk was likely to present the most problems due to its broad scope.
The two speakers were joined by Mr Arthur Lang, Group Financial Officer for CapitaLand Limited, and Mr Danny Teoh, Board Member, DBS Group Holdings Ltd. in a panel which discussed the impact of these changes on companies in Singapore.