Professional Documents
Culture Documents
Honesty-not tell lie, tell the truth with investigation of the truth
Openness-Timely provide effective info to SH accept confidential info
Transparency-complete clarity with all info presented (fin-non-fin)
(understandability)
Social responsibility-Sustainability + CSR + Environmental issues
Fairness-Equal treatment of all StKHL (Minority SH)
Accountabilityindividuals who take decision is accountable for the
consequences of the outcome
Independence-Avoid circumstances which arose conflict of interest.
Reputation-do not do anything which can effect reputation, adopt good
business cases, code of ethics.
ROLE of Board: Fiduciary Duty: Duty of care, Duty of loyality.
1 Responsible for direction
2 Delegated most ex.power to ex.mgt
3 Board balance and Independence
4 Appointment of the Board
5 Performance Evaluations
6Decision about raising finance
7Paying dividend and making major decision
Role of Chairman:
1 Functioning the board by overseeing it
2 Setting agenda for meeting
3 Oversee board actions
4 Conducting the board meeting
5 Liaisons with EDs and NEDs
6 Communicate with key stakeholder ( SH , II )
Role of SH
1 Vote on the election of Director
2 Amendment in corporate charter (changes in nature in business and share,
transfer to another jurisdiction)
3 Key corporate matter (sale of com assets,merger or ACQ, Liquidation)
Problem: problem of collective action, free rider, agenda control by
manager.
Role of Stock Exchange:
1 Director must attend edu.prog by S.exg
1 Create awareness.
2 Ensure implementation of Risk management policies and procedure
3 Provide info and up to date the board
4 Evaluate new risk identified by Operational Management.
5 Review investment appraisals
6 Give feedback of I. Proposal by evaluating it to the board.
Risk Management System: 5 steps
1 Identify the risk: based on:sources, strategic or operational, based on
severity (strategic, tactical, operational),
2 Risk Assessment: likelihood and impact, based on quantitative, semi
quantitative and qualitative.
3 Manage the risk: Tara framework, risk diversification, ALARP
4 Communication the risk result: report to the Risk COM.
5 Motoring: regular review risk status, effectiveness of the measure for
managing the risk
Internal control : always focus on Turnbulls guidance.
Elements: PAPAMOSS
1 Control Activity / Control Procedure: operational, financial, compliance,
risk MGT.
2 Control Environments: awareness and attitude to internal control shown by
MGT, EMPLOYEE, DIRECTORS
3 Monitoring: Should undertake by I. Audit ensure that control are being
APPLY AS PRESCRIBED.
4 Communications: timely reporting to the board for sound decision making,
whistle blowing arrangement.
Advantage
1 Manage risk that is significant for a coms business objective
2 facilitate the effectiveness and efficiency of I.C (operational)
3 Help to ensure the reliability of IC and Ex. Reporting
4 Assist Compliance with Law and regulation
5 Timely Preparations of reliable business info
6 Safe guarding coms assets including prevention and detection of fraud.
The Board role in Risk management, Role of NEDs, Chairman, EDs in
Risk management:
1 Identify the nature and extent of the risk facing by com.
2 The extent and categories of risk it regards as acceptable for the company
to bear (risk apatite)