Print Article

“REGULATORY RISK” is now the top concern for the board. So what can you do to mitigate this risk?


According to new research from insurance brokers McGill and Partners, an overwhelming majority of board directors are increasingly concerned about the personal ramifications of a regulatory investigation (see below for link).

Regulatory investigations – could result in substantial fines, and, depending on the nature of the wrongdoing, could also result in criminal proceedings. According to AIG, defence costs per director for a typical SFO prosecution have doubled in recent years and could reach up to £4 million.

So, what are some practical tips to mitigate this horrendous risk?

  1. Arrange training on good corporate governance. Not only when onboarding but also annually (or more frequently as required).
  2. Read and understand matters reserved for the board and board authorities and know where recommendation and decision making sits.
  3. Ensure business decisions, objections and challenges are recorded in the minutes. Read the minutes in advance of the meeting, check the draft minutes, and amend if necessary before they approve.
  4. Review board member make-up e.g. skills, experience and behaviours and do non-executive directors challenge?
  5. Mandate a Risk & Compliance report into the board and ensure critical risk and compliance indicators feed into MI.
  6. Tone from the top and stakeholder and public perception is key, but is ‘tone from the middle’ right?
  7. Foster an open and transparent workplace culture where people feel confident to speak up.
  8. Implement policies, procedures and processes for the following:- 1] internal investigation,2] conduct and disciplinary matters, 3]whistleblowing and speaking up, 4]bribery & corruption, 5]recruitment and retention.
  9. Horizon scanning – look for emerging risks (e.g. hybrid and flexible work is an example of a huge risk emerging for some time).
  10. Have decent D&O and other insurance policies for investigations and review whether any other indemnities are necessary?


The Team

Meet the team of industry experts behind Comsure

Find out more

Latest News

Keep up to date with the very latest news from Comsure

Find out more


View our latest imagery from our news and work

Find out more


Think we can help you and your business? Chat to us today

Get In Touch

News Disclaimer

As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email