Abstract
We argue that operational risk is a product of organisations and the context in which they operate, but particularly of governance and regulations. We question the efficacy of current standards of governance in respect of this.
We review the development of the London Stock Exchange's Combined Code for Corporate Governance, through each of the Cadbury, Hampel, Greenbury and Turnbull committees’ reports, noting a shift in emphasis from a shareholder to a stakeholder perspective, and back again. From here, we focus on the Turnbull recommendations, and the measures through which risk and its control have become a much more fundamental part of governance processes.
We then use examples from the private and public sector to illustrate how the implementation of Turnbull might influence risk management in organisations.
We conclude with the thought that the Turnbull Report might mark a turning point, but that this is only a first step. The full effect of the Combined Code will only be felt if the recommendations of the Turnbull Committee are implemented effectively.
Similar content being viewed by others
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Elliott, D., Letza, S., McGuinness, M. et al. Governance, Control and Operational Risk: The Turnbull Effect. Risk Manag 2, 47–59 (2000). https://doi.org/10.1057/palgrave.rm.8240058
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.rm.8240058