The impact of companies lacking robust risk management and good governance will, as we have
seen, impact negatively on company’s long-term investment performance. A lesson for companies
from this crisis must be that greater interrogation of how well a company is managed and the
adequacy of its risk controls are all material factors fundamental to investment management.
A focus of a firm’s risk control framework must be an effective risk and audit committee and
knowledgeable non-executives with a willingness to challenge senior management.