This Tomorrow’s Company report seeks to understand the link between innovation and the effective management of risk. The price of poor governance has been increasingly evident through the credit crunch and recession. The report in particular considers the relationship between innovation and difference or 'diversity' on the board;  the effectiveness and role of non-executive directors, and the impact of the criteria of independence; the relationship between innovation and risk; and the impact of quality of leadership - 'the tone from the top'.