The Requirement for a Director of Corporate Defense in UK Banking Institutions
The Walker Review of Corporate Governance in UK Banks, HM Treasury, July 2009
27 Pages Posted: 16 Sep 2009
Date Written: July 2009
The banking crisis has cruelly exposed how UK banks failed to adequately defend the interests of their multiple stakeholders and has resulted in the reputation of the banking sector being severely tarnished. This proposal specifically addresses measures to help to improve corporate governance in UK banks, by focusing on the requirement to strategically manage the critical components which constitute an organisation’s program for self-defense (i.e. governance, risk, compliance, intelligence, security, resilience, controls & assurance). The central theme of this proposal is that there is now a strategic imperative to create the position of Director of Corporate Defense in UK banks. The report proposes that the presence of this position within UK banks would help to urgently address the following matters: the requirement to improve the existing lines of defence in UK banks; the requirement to re-balance the boardroom culture in UK banks; the requirement to align business generation and operational activities; the requirement to adequately defend the diverse interests of the stakeholders.
In summary this report proposes that the appointment of a Director of Corporate Defense, to effectively safeguard stakeholders interests, will help provide tangible evidence that the current weaknesses are being addressed, and will go a long way towards helping to restore public confidence in UK banks, and the challenge of helping to repair the damage done to the reputation of the UK banking sector.
Keywords: Corporate defence, defense, corporate governance, risk management, compliance, intelligence, security, resilience, continuity, controls, assurance, audit, investigation
JEL Classification: G3, G30, G34, G38, M1, M14
Suggested Citation: Suggested Citation