The Institute of Directors has published a report on the Post Office Scandal, A Failure of Governance. I was part of a fascinating advisory group, skilfully led by IoD’s Roger Barker.
The report makes a number of recommendations:
The report also offers a great, high-level analysis of some of the enquiry evidence from a corporate governance perspective.
I was particularly pleased that the IOD took on the issue of legal risk. Here’s what the paper says:
The Post Office scandal highlighted the need for responsible oversight of legal risk at board level. The UK Corporate Governance Code should be amended to define an explicit legal risk responsibility for a designated board committee (e.g. the risk or audit committee, or where appropriate, a specific legal risk committee). The committee should update the board on a regular basis on matters such as litigation, disclosure exercises, investigations and regulatory responses. In financial services, this role should be mandated to a designated individual under the Senior Managers and Certification Regime. The Financial Reporting Council should develop supporting Guidance which advises directors on how to manage the advice of internal and external legal counsel, including the ability of senior legal advisers to access the Board when dealing with matters of serious concern.
It was also heartening to see the level of detailed knowledge and engagement with what has happened in the Post Office within the group.