Experian 2016 Annual Report Download - page 69

Board, committee and director effectiveness review
The UK Corporate Governance Code states that the Board should undertake a formal and rigorous annual evaluation of its own
performance and that of its committees and individual directors. This year was the third in the Board’s three-year review cycle,
which is as follows:
• Year 1 a full external evaluation;
• Year 2 an internal review against the detailed Year 1 review; and
• Year 3 a questionnaire-based internal evaluation.
In January 2016, each Board member was asked to evaluate the Board’s performance in a number of areas. These included:
Board composition and expertise; Board dynamics; time management; strategic oversight; competition; operational oversight; risk
management and internal control; executive remuneration; and technical development. The Board also evaluated itself against the
areas of focus it agreed last year, and a summary of progress against those items appears below. Finally, the Board agreed on areas
of focus for the coming year, ahead of the full external evaluation next year, and these appear on the following page.
In addition to this process, each director met with the Chairman in relation to his/her individual performance, and the output from
the evaluation process was used to frame these discussions. The Deputy Chairman and Senior Independent Director evaluated the
Chairman, taking account of input from the Chief Executive Officer and the other directors. Each principal Board committee also
evaluated its own performance.
Progress against the agreed 2014/15 areas of focus is summarised as follows:
Area Specific focus Progress during the year
Strategy Continued challenge of operating
structures and business models, to
ensure they remain optimal in a changing
external environment. Enhanced
reporting to the Board regarding
execution of the Group’s strategy.
• The Group’s five key strategic priorities, including (i) driving
organisational efficiency, and (ii) a new capital framework,
continue to be embedded
• The Chief Executive Officer reports against the agreed
Group strategy at regular intervals, through his standing
Board report
Reporting Enhance Board reporting to include
further metrics and potential additional
non-financial indicators.
• Board reporting has been amended to more
comprehensively monitor business performance,
and to incorporate a section covering operations
• Board reporting now includes full metrics on,
for example, sales performance and pipeline
• It is intended to include other non-financial indicators
at appropriate intervals
Risk management
and systems
Development of risk appetite and
tolerance statements for principal
risks; continuation of training in key
information security and regulatory
compliance areas; consideration of the
UK Financial Reporting Council’s (‘FRC’)
Guidance on Risk Management, Internal
Control and Related Financial and
Business Reporting.
• Group Risk Management worked with external advisers
and management to develop risk appetite statements
• The Group Operating Committee and Executive Risk
Management Committee reviewed the statements
• The Audit Committee and the Board approved the statements
• The Audit Committee considered the FRC’s guidance
Year 3 (2016)
Questionnaire-based
internal evaluation
Year 1 (2017)
Evaluation by
external facilitator
Year 2 (2018)
Internal review against
detailed Year 1 review
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67Governance •Corporate governance report