Unit 8 - Corporate Governance, creating a Compliance culture & benefits of Compliance

hlplumb
Mind Map by , created almost 5 years ago

Mind Map on Unit 8 - Corporate Governance, creating a Compliance culture & benefits of Compliance, created by hlplumb on 12/07/2014.

22
0
0
Tags No tags specified
hlplumb
Created by hlplumb almost 5 years ago
STUDY PLANNER IGCSE
Felixus
English Language Revision
saradevine97
OCR AS Biology F211 Transport in plants.
Megan Vann
Physical Description
Mónica Rodríguez
Astronomy Practice Quiz
cbruner
English Literary Devices
miss.bakare
MR BRYANT AMERICAN NATION FINAL FLASHCARDS
grantwilliammaxe
AQA Sociology AS level
rhian-hay
King Lear flash cards
Sophie Tilney
Test you Teenage Mutant Ninja Turtles knowledge
Ninja Turtles
Unit 8 - Corporate Governance, creating a Compliance culture & benefits of Compliance
1 CG & effective compliance - Common themes
1.1 TOR for committees & levels of responsibilities
1.2 Effective systems & controls
1.3 Clearly documented policies and procedures
1.4 Senior mgmt responsibility
1.5 Effective flow of MI
2 The credit crisis exposed short comings in the Governance and risk mgmt of firms
2.1 The link between Compliance, corporate Governance , ethics and corporate social responsibility is clear in light of the recent economic crisis and fundermental loses of consumer confidence. The aim for a financial services firm must be to go beyond purely cosmetic compliant exercises
2.2 Problems were one of ethics, culture, greed, morality
3 KEY COMPONENTS OF GOOD CORP GOVN STRUCTURE
3.1 RESPONSIBILITY & ACCOUNTABILITY
3.1.1 Clearly defined for decision making
3.1.1.1 adhoc system for urgent decisions
3.1.2 BOARD accountable
3.2 TRANSPARENCY
3.2.1 CG structure and TORs of committees should be communicated and minutes taken and made available as required
3.2.1.1 First agenda item to review previous actions
3.3 RELATIONSHIPS
3.3.1 How each committee within the framework interacts and how interested stakeholders are represented within this
3.4 STAKEHOLDERS
3.4.1 clearly identified and their interested represented
3.5 PROCESSES
3.5.1 All processes within the Corp Govn framework must be clearly documented , version controlled and kept up to dat
3.6 STRUCTURE
3.6.1 Access to appropriate committees and the Board dependent upon the needs of the stakeholder
3.7 Education & training
3.7.1 Everyone is responsible for Compliance
4 DEFINITION: CORPORATE GOVERNANCE IS THE SYSTEM BY WHICH FIRMS ARE DIRECTED AND CONTROLLED
5 Probably the most important system within a firm to achieve long term success . Getting it right can give sustainable competitive advantage.
5.1 Good sound corporate governance leads to a better and well run company
5.1.1 effective compliance envirnoment= the introduction and maintenance of systems and procedures * nurturing of a healthy internal attitude towards the benefits of compliance throughout the firm as a whole
5.1.1.1 Demonstrating the benefits is hard as they can be intangible.It is therefore necessary for compliance professionals to be able to promote to benefits of compliance at all levels within a business
5.1.1.1.1 For example, where the regulator decides not to take further action following the notification of a breach (as a result of the good relationship and high degree of confidence that the firm will put things right) - or negative ones, such as highlighting where other firms have fallen foul of the regulations and the consequences of this
5.1.2 CMP dept is now often given the role of managing corp govn framework
5.1.2.1 CMP can demonstrate how it can add value, as it will have greater access to decision making process. CMP function has a very significant role
5.1.3 Corp Governance is fundamentally 'DECISION MAKING'
5.1.3.1 4R's - RIGHT INFO - RIGHT PEOPLE - RIGHT TIME _ RIGHT DECISION
5.1.3.1.1 All of these will improve the probability of making the right decision
5.1.3.1.1.1 Decisions made in committees/board should aid in achievement of firms stratgic ojectives and corp values.
5.1.3.2 RISK MGMT
6 Key sources reference/regulation
6.1 UK
6.1.1 UK Corporate Governance codes published by Financial reporting council (FRC) 2003 updated 2012
6.1.2 Walker Review 2009 - credit crunch
6.1.2.1 Has influenced UK corp govern of financial services industry
6.1.2.1.1 NEDs (now approved persons) to challenge board which had not been happening. Banks were running themselves.
6.1.3 Principle on Corp Governance 2004 being reviewed by OECD
6.1.4 FCA & PRA SYSC section of handbook. applicable to all regulated firms.
6.1.5 cadbury report 1992
6.2 Europe/US
6.2.1 Sabines Oxley ACT 2002 - Enron

Media attachments