The 'risk culture' has caught up with reward practice. Shareholder groups and regulators are becoming more aware of the potential risks inherent within reward plans. As a consequence, RemCos and Reward Directors are being asked to evaluate these risks - but where do you start?

PARC and WorldatWork invited you to a meeting at which we looked in depth at 'reward risk' - what we mean by it, how we can mitigate it, and how companies are addressing it.

With the help of Carol Arrowsmith of Deloitte, we examined the issues and context for this increasingly important business and governance issue. We outlined what has been learnt over recent years and the features and behaviours that may mitigate reward risk. We considered whether there could be unanticipated risks inherent within your reward culture.

We reported back on the results of a recent member survey which investigates how UK companies are responding to the issue and whether plans and practices have changed as a result. It's clear that 'reviewing for risk' is not just an issue for financial services companies but has concerned Remuneration Committees in a range of other sectors. We compared our UK findings with the experience of WorldatWork members in the US and elsewhere.

We then looked in more depth at two case studies, one representing the 'light touch' end of the risk review spectrum and the other a major 'systemic' review. Our presenters explained why they undertook their reviews, how they structured them, and what they have learnt. Our case studies were presented by:

· Nigel Johnson of PARC member Invensys, and
· Desirée Klein-Wagner of WorldatWork member Allianz.

Finally, we ended the meeting with a summary and group discussion of the insights gained and what these suggest for reward practice and culture going forward.