The Walker Review which scrutinised
corporate governance in the UK
financial sector highlighted the need
for non executive directors to be
better informed and more engaged.
But non executive directors can never
be close enough to the business to
be certain of their precise information
needs, nor to influence management’s
decision making at an operational
level. This is because good
governance at board level is a
necessary but not a sufficient
condition to ensure good performance
and risk management.