Sir David Walker to launch new corporate risk centre at University of Greenwich
If we do not strengthen corporate governance in UK board rooms, then the economic performance of our companies will continue to suffer.
That is the stark warning that Sir David Walker, the internationally respected banker who last year reviewed the state of corporate governance in the UK banking industry, gave during an inaugural address at the University of Greenwich.
Speaking at the launch of the university's new Centre for Governance, Risk and Accountability on Thursday, July 1, Sir David said that without improved performance in bank and life assurance company board rooms we will run a continuing risk of further catastrophe ahead.
Sir David, who is now a senior adviser to Morgan Stanley, is a former director of the Bank of England and deputy chairman of Lloyds TSB, the banking group. His review recommendations are forming the basis for a wide-ranging debate on how to strengthen corporate governance in UK boardrooms.
Although his recommendations were originally just for the regulation of banks and the financial sector, Sir David said he welcomes the fact that the Financial Reporting Council has subsequently taken the view they should be applied to the boards of all companies.
Sir David added that the recent financial crisis from which the UK and the developed world are still emerging has led him to become less certain than he used to be that the Anglo Saxon model of corporate governance and dispersed ownership is the best.
Now he thinks we also need to consider other business models such as private equity, family-owned businesses and state capitalism as exemplified in China, as equally apt ways of generating economic performance.
We need to be less arrogantly assured, he said, that the Anglo Saxon way of organising business is necessarily the best or only way forward.
Recent events in economic and financial markets have highlighted the need for further research, academically-led debate and new practical solutions to the issues of risk, accountability and corporate governance.
With that in mind, the new centre is being launched as a focus of excellence to create a virtuous circle of learning and enterprise between industry, the public sector and academia.
The centre will produce cutting-edge research, disseminate best practice to industry and help to create public policy.
More than 20 academics will contribute to its work, drawing on the university’s research strengths in finance and accountability, computing and mathematical sciences, psychology and counselling, and law and criminology.
The centre will specialise in risk management and modelling, corporate governance and compliance, and corporate social responsibility.
Ends
Contact: Dr Julia Mundy 020 8331 9695.
E-mail: J.Mundy@gre.ac.uk
Picture caption left to right: Dr Alex Stojanovic, Director of the Centre for Governance, Risk and Accountability; Dr Lesley Catchpowle, Accounting and Finance Research Director; Sir David Walker; Baroness Tessa Blackstone, Vice Chancellor, University of Greenwich; Professor Leslie Johnson, Head of Business School; Dr Julia Mundy, Principal Lecturer, Accounting and Finance; and Professor Tom Barnes, Deputy Vice Chancellor, University of Greenwich
For further information, please contact:
Lee Armitt
Press Officer
University of Greenwich
020 8331 9420
l.armitt@greenwich.ac.uk