Audit Risk And Compliance Board Case Study
For this to be done well, the board needs to adhere to the following best practice. Leadership structure- This includes the role of the Chairman as well as the CEO. Best practice advises that these two roles should be kept separate. Reason for this is that the both roles come with considerable responsibility as well as power. Combining them may lead to an overload of power as well as an inability to do both jobs well.
Member KSAO- The board should include members with a mixture of knowledge, skills, abilities and other competencies (KSAO). The board should not be overloaded with one type of expertise for example, financial expertise only, as this may lead to groupthink. A variety of key competencies brings benefit to the board as it lends …show more content…
This has led to the formation of policies and procedures by the board. An Audit Risk and Compliance Committee was created to circumvent the potential loss from subsequent risk. This committee was further divided into, the Strategic Risk Committee, responsible for strategic risk and the Audit and Compliance Committee, responsible for complying with risk policies and procedures determined by the board. This group ensures risk management aligns with company strategy and they liaise closely with the Risk Management Department, the Internal Audit Department and the Management Risk Committee. (UTC, …show more content…
Unlike Enron and Clico, UTC’s adherence to sound standards of corporate governance along with risk management processes has led to over thirty years of growth. According to their 2015 annual report, they now have 595,706 unit holders. They continue to maintain majority market share in their field despite troubling economic times. Four (4) out of their five (5) funds they offer produced positive returns. Not only focusing on the return to investors, the corporation has embarked on many community initiatives like the Tobago heritage festival as well as sponsorship of the Red Cross kiddie’s carnival. (UTC, 2015)Through this focus on their corporate social responsibility, they foster indelible linkages in the hearts of the communities and essentially the hearts of their stakeholders. This has given the company a positive
Member KSAO- The board should include members with a mixture of knowledge, skills, abilities and other competencies (KSAO). The board should not be overloaded with one type of expertise for example, financial expertise only, as this may lead to groupthink. A variety of key competencies brings benefit to the board as it lends …show more content…
This has led to the formation of policies and procedures by the board. An Audit Risk and Compliance Committee was created to circumvent the potential loss from subsequent risk. This committee was further divided into, the Strategic Risk Committee, responsible for strategic risk and the Audit and Compliance Committee, responsible for complying with risk policies and procedures determined by the board. This group ensures risk management aligns with company strategy and they liaise closely with the Risk Management Department, the Internal Audit Department and the Management Risk Committee. (UTC, …show more content…
Unlike Enron and Clico, UTC’s adherence to sound standards of corporate governance along with risk management processes has led to over thirty years of growth. According to their 2015 annual report, they now have 595,706 unit holders. They continue to maintain majority market share in their field despite troubling economic times. Four (4) out of their five (5) funds they offer produced positive returns. Not only focusing on the return to investors, the corporation has embarked on many community initiatives like the Tobago heritage festival as well as sponsorship of the Red Cross kiddie’s carnival. (UTC, 2015)Through this focus on their corporate social responsibility, they foster indelible linkages in the hearts of the communities and essentially the hearts of their stakeholders. This has given the company a positive