In Memoriam – Peter J. Hughes, a Thought Leader in Operations, Risk and Financial Management

Peter J. Hughes, a chartered accountant and global thought leader in risk accounting, passed away on February 8, 2024, at the age of 73. His career, spanning five decades, was marked by a tireless commitment to innovation, integrity, and transforming the way organizations understand and manage risk.

Born in Cockfosters, UK, Peter grew up in Barnet and Brookman’s Park. He began his professional journey as an articled clerk at Cartwright Scrutin Trup & Co., later completing his articles at Hodgson Harris & Co. After qualifying as a chartered accountant in 1973, Peter embarked on a promising career in finance, joining Peat Marwick Mitchell (now KPMG) in Frankfurt. His early roles provided a solid foundation in auditing and financial management, which became the bedrock of his future contributions to global finance.

In 1977, Peter joined Chase Manhattan Bank, where he spent 26 years in a series of senior roles that spanned the globe. His assignments took him to Brazil, Germany, and the UK, where he held positions such as European Regional IT Audit Manager, Chief Audit Executive in Brazil, and CFO for both Chase Bank Brazil and Chase Bank AG in Frankfurt. By 1994, Peter was leading the Europe Finance Service Centre, and later he became Global Head of Risk Management for Shared Technology and Operations. His tenure at Chase was marked by innovation, operational excellence, and a forward-thinking approach to risk management.

Peter’s career at Chase highlighted his ability to navigate complex, interconnected financial systems, a skillset that would later define his pioneering work in risk accounting. After leaving Chase in 2003, Peter shifted his focus toward academia and industry reform. As a Visiting Fellow at Durham University Business School, he spearheaded research into risk-based accounting methods and systems, challenging traditional approaches that often failed to address the evolving risk landscape of modern finance.

In 2017, Peter founded the Risk Accounting Standards Board (RASB), where he sought to address the shortcomings of conventional accounting frameworks. His work centered on the development of “Risk Accounting,” a revolutionary methodology designed to quantify and integrate non-financial risks—such as operational, reputational, and cyber risks—into accounting systems. At the heart of this methodology was the Risk Unit (RU), a standardized metric that allows organizations to measure and manage risk exposures in a systematic and transparent way.

Peter’s vision culminated in his seminal 2023 book, Risk Accounting: The Complete Guide to Quantifying and Accounting for Non-Financial Risks. In it, he laid out a compelling case for incorporating non-financial risks into accounting frameworks, arguing that such integration is essential for building resilient, accountable organizations. His ideas resonated across industries, earning him recognition as one of the foremost thought leaders in risk management and accounting.

Colleagues and mentees describe Peter as a visionary whose work continues to inspire. His dedication to advancing the principles of risk accounting has left an indelible mark on the financial community. More than a technical innovator, Peter was a tireless advocate for ethical governance and a safer financial system. His contributions are especially relevant in today’s world, where systemic risks and global crises demand a more holistic approach to managing uncertainty.

Peter’s legacy lives on through the Risk Accounting Standards Board, which remains committed to promoting his vision. His work has provided the tools and frameworks necessary for organizations to navigate an increasingly complex risk environment, offering hope for a future where accountability and sustainability are at the forefront of decision-making.