Risk management procedures 'should be reviewed'

Corporate risk management procedures should be reviewed, it has been claimed.

Given the forthcoming introduction of the UK's Corporate Manslaughter and Corporate Homicide Act 2007, specialist insurance firm Hiscox believes that existing risk management procedures should be placed under scrutiny by businesses, reports the Financial Times.

Receiving royal assent in July 2007, the new act will create the new offence of corporate manslaughter.

Among those organisations affected by the new legislation are police forces, some government departments and trade unions.

"We don't yet know how often or how rigorously judges will implement this law, but one thing very clear is that the act is going to be another worry to add to the many already faced by businesses," said Callum Taylor, management liability underwriting manager at Hiscox, in a report by the Financial Times.

In Scotland, the new offence will be known as corporate homicide.

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