Why This Matters

As capital markets mature and risks like cybersecurity and climate intensify, the Audit & Risk Committee’s (ARC) mandate is rapidly expanding beyond traditional financial oversight.

Boardroom Tensions

• Is the ARC equipped to oversee non-financial risks like AI bias, model drift, and data governance?
• Are internal controls keeping pace with high-growth environments and digital transformation?
• Does our risk oversight extend beyond compliance to strategic resilience?

Discussion Areas

• Integrated risk oversight: Overseeing the intersection of financial, climate, and cyber risks.
• Technology & AI governance: Establishing frameworks for the integrity of non-financial data (used for ESG and AI models) and overseeing new tech risks.
• Whistleblowing systems & internal audit effectiveness: Ensuring robust mechanisms are in place and trusted.

Outcome

A modernised ARC mandate and toolkit, equipping members to provide effective oversight in a complex, tech-driven, and regulated environment.