The risks around under-licensing are significant but rarely publicised – often falling between IT, legal, procurement and finance teams. The latency is dangerous given the potential for very high claims that could have been addressed earlier.

Never raised by the statutory auditors, this is a board issue where the risk(s) are often overlooked by both the audit committee and any separate board risk committee. This is wrong: software under-licensing is not an incidental administrative issue but one that properly falls to be managed by the audit committee under the FRC’s UK Corporate Governance Code (July 2018).

Robin Fry sets out 7 key lessons for the banking and finance sectors. Click here to read the extended version.