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Risk Structures, Policies, Procedures Compliance
Risk management involves the identification, assessment, and prioritization of risks that may affect an organization's ability to achieve its objectives. It is a proactive process that involves identifying potential risks and developing strategies to mitigate or manage them. Internal control, on the other hand, is the system of policies, procedures, and processes that an organization implements to achieve its objectives. It provides reasonable assurance that an organization's operations are effective, efficient, and compliant with applicable laws and regulations.
Edited at 2023-07-29 07:13:56- System of Risk Management and Internal Control
This mind map is designed to explore the interconnected concepts of risk management and internal control within organizations. Effective risk management and internal control practices are essential for safeguarding an organization's assets, maintaining financial integrity, and achieving strategic objectives while ensuring compliance with relevant laws and regulations. By visually representing these concepts and their interrelationships, the mind map aims to provide a comprehensive overview of how organizations can effectively identify, assess, and manage risks while implementing robust internal controls to safeguard their operations and assets.
- Risk Structures, Policies, Procedures Compliance
Risk management involves the identification, assessment, and prioritization of risks that may affect an organization's ability to achieve its objectives. It is a proactive process that involves identifying potential risks and developing strategies to mitigate or manage them. Internal control, on the other hand, is the system of policies, procedures, and processes that an organization implements to achieve its objectives. It provides reasonable assurance that an organization's operations are effective, efficient, and compliant with applicable laws and regulations.
- Remuneration of Directors and Senior Executive
The remuneration of top-level executives is a critical aspect of corporate governance and has a significant impact on an organization's performance, culture, and stakeholder relationships. This interconnected web of ideas explores the various components, considerations, and challenges associated with remunerating directors and senior executives.
Risk Structures, Policies, Procedures Compliance
- System of Risk Management and Internal Control
This mind map is designed to explore the interconnected concepts of risk management and internal control within organizations. Effective risk management and internal control practices are essential for safeguarding an organization's assets, maintaining financial integrity, and achieving strategic objectives while ensuring compliance with relevant laws and regulations. By visually representing these concepts and their interrelationships, the mind map aims to provide a comprehensive overview of how organizations can effectively identify, assess, and manage risks while implementing robust internal controls to safeguard their operations and assets.
- Risk Structures, Policies, Procedures Compliance
Risk management involves the identification, assessment, and prioritization of risks that may affect an organization's ability to achieve its objectives. It is a proactive process that involves identifying potential risks and developing strategies to mitigate or manage them. Internal control, on the other hand, is the system of policies, procedures, and processes that an organization implements to achieve its objectives. It provides reasonable assurance that an organization's operations are effective, efficient, and compliant with applicable laws and regulations.
- Remuneration of Directors and Senior Executive
The remuneration of top-level executives is a critical aspect of corporate governance and has a significant impact on an organization's performance, culture, and stakeholder relationships. This interconnected web of ideas explores the various components, considerations, and challenges associated with remunerating directors and senior executives.
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- Outline
Risk Management & Internal Control - Risk Structures, Policies, Procedures & Compliance-
Structures
Risk Management Committee
Reviewing the organisation’s risk management and providing assurance to the board that risk management and the processes for the control over risk are effective
Giving advice to the board and make specific recommendations on risk appetite, the organisation’s risk tolerance and strategies to manage risk
Provide input into strategy formulation by helping the board to understand the key risks facing the organisation and the opportunities available to the organisation by managing those risks
Policies & Procedures
RIsk Policy
Approved by the board, of the extent and kind of risks an organization is willing to take in pursuit of its objectives
Risk Management Manual
Sets out how risk will be managed within the organization
Annual review of effectiveness should consider
The company’s risk appetite
The effectiveness of the company’s public reporting processes
The issues dealt with by the board throughout the year under review
Risk management and internal controls systems
To what extent do the risk management and internal control systems underpin and relate to the company’s business model?
How are authority, responsibility and accountability for risk management and internal control defined, co-ordinated and documented throughout the organisation? How does the board determine whether this is clear, appropriate and effective?
How does the board satisfy itself that the information it receives is timely, of good quality, reflects numerous information sources and is fit for purpose?
How does the board ensure it understands the organisation’s exposure to each principal risk before and after the application of mitigations and controls, what those mitigations and controls are, whether they are operating as expected?
Monitoring and review
What are the processes by which senior management monitor the effective application of the systems of risk management and internal control?
In what way do monitoring and review processes take into an account an organisation’s ability to re-evaluate the risks and adjust the controls effectively in response to changes in its objectives, its business and its external environment?
How are processes or controls adjusted to reflect new or changing risks, or operational deficiencies?
Whistleblowing
Effective whistleblowing procedure, need to cover
Fraud
A serious violation of a law or regulation by the company or by directors, managers or employees within the company
A miscarriage of justice
Offering or taking bribes
Price-fixing
A danger to public health or safety, such as dumping toxic waste in the environment or supplying food that is unfit for consumption
Neglect of people in care
In the public sector, gross waste or misuse of public funds
Whistleblowing policy and procedures
Purpose, scope and coverage
Procedures for reporting a matter
What happens when communication is received from a whistleblower
Anonymity of the whistleblower
Communication with the whistleblower
Protection of the whistleblower
Issues the board should consider when introducing a whistleblowing procedure
Building a culture of trust and openness
A statement that the organisation takes malpractice or misconduct seriously and is committed to a culture of openness in which employees can report legitimate concerns without fear of penalty or punishment
How are matters to be reported?
Who is going to be responsible for receiving issues?
Anonymity versus non-anonymity
Improprieties covered by the whistleblowing policy
Investigation, follow-up and reporting procedures
Protection for genuine whistleblowers
Cybersecurity
Intro
Globally, there is an ever-greater reliance on technology
Organisations are required to manage the risks associated with technological disruptions within their organisations
There is a growing recognition that cybersecurity should be high on the board’s agenda
Recent global cyberattacks have highlighted the importance of cybersecurity risk management for board directors
The consequences of a cybersecurity incident can be severe. The economic loss from an incident can be compounded by reputational damage, loss of trade secrets and the costs associated with implementing disaster recovery plans
Boards should ensure that the organisation’s information and technology are protected
3 parts
Physical security if tech
Personnel management
Hardware & Software
Governance of Information - Info Disclosure Policy should inc
Objectives & Principles of the disclosure
To keep stakeholders informed about the co to enable them to make informed decision
Info should be accurate, accessible, timely, complete, balanced between positive & negative
Authorised Persons
Should set up who is authorized to disclose what info to which stakeholder group
These ind co-ordinate the statements that they will be making to their audience
Public Info
Should set up what info should be public
Confidential Info
Should set up what info should be kept confidential, who will have access & steps taken to protect that info
Insider Info
If disclosed, would move co's share price
The handling of this info would be set out in public
Disaster Recovery Plans
Is a plan of what needs to be done immediately after a disaster to recover from the event
The disaster is of a nature unconnected with the co's business & outside of the control of management
Eg:
Natural Disasters (Fires, Flood, Storm)
IT Disruptions
Major Terrorist Attacks
most needed in industry where a lenghty/widespread shutdown of operations could be catasthropic
Should
Specify which operations are essential & must be kept going
Identify & analyse all potential threats to essential operation
Identify possible reactions to the threats to essential operation
Identify who should be responsible for keeping the public informed about the impact & recovery measures taken
Risk Management & Internal Control - Risk Structures, Policies, Procedures & Compliance-
Structures
Risk Management Committee
Reviewing the organisation’s risk management and providing assurance to the board that risk management and the processes for the control over risk are effective
Giving advice to the board and make specific recommendations on risk appetite, the organisation’s risk tolerance and strategies to manage risk
Provide input into strategy formulation by helping the board to understand the key risks facing the organisation and the opportunities available to the organisation by managing those risks
Policies & Procedures
RIsk Policy
Approved by the board, of the extent and kind of risks an organization is willing to take in pursuit of its objectives
Risk Management Manual
Sets out how risk will be managed within the organization
Annual review of effectiveness should consider
The company’s risk appetite
The effectiveness of the company’s public reporting processes
The issues dealt with by the board throughout the year under review
Risk management and internal controls systems
To what extent do the risk management and internal control systems underpin and relate to the company’s business model?
How are authority, responsibility and accountability for risk management and internal control defined, co-ordinated and documented throughout the organisation? How does the board determine whether this is clear, appropriate and effective?
How does the board satisfy itself that the information it receives is timely, of good quality, reflects numerous information sources and is fit for purpose?
How does the board ensure it understands the organisation’s exposure to each principal risk before and after the application of mitigations and controls, what those mitigations and controls are, whether they are operating as expected?
Monitoring and review
What are the processes by which senior management monitor the effective application of the systems of risk management and internal control?
In what way do monitoring and review processes take into an account an organisation’s ability to re-evaluate the risks and adjust the controls effectively in response to changes in its objectives, its business and its external environment?
How are processes or controls adjusted to reflect new or changing risks, or operational deficiencies?
Whistleblowing
Effective whistleblowing procedure, need to cover
Fraud
A serious violation of a law or regulation by the company or by directors, managers or employees within the company
A miscarriage of justice
Offering or taking bribes
Price-fixing
A danger to public health or safety, such as dumping toxic waste in the environment or supplying food that is unfit for consumption
Neglect of people in care
In the public sector, gross waste or misuse of public funds
Whistleblowing policy and procedures
Purpose, scope and coverage
Procedures for reporting a matter
What happens when communication is received from a whistleblower
Anonymity of the whistleblower
Communication with the whistleblower
Protection of the whistleblower
Issues the board should consider when introducing a whistleblowing procedure
Building a culture of trust and openness
A statement that the organisation takes malpractice or misconduct seriously and is committed to a culture of openness in which employees can report legitimate concerns without fear of penalty or punishment
How are matters to be reported?
Who is going to be responsible for receiving issues?
Anonymity versus non-anonymity
Improprieties covered by the whistleblowing policy
Investigation, follow-up and reporting procedures
Protection for genuine whistleblowers
Cybersecurity
Intro
Globally, there is an ever-greater reliance on technology
Organisations are required to manage the risks associated with technological disruptions within their organisations
There is a growing recognition that cybersecurity should be high on the board’s agenda
Recent global cyberattacks have highlighted the importance of cybersecurity risk management for board directors
The consequences of a cybersecurity incident can be severe. The economic loss from an incident can be compounded by reputational damage, loss of trade secrets and the costs associated with implementing disaster recovery plans
Boards should ensure that the organisation’s information and technology are protected
3 parts
Physical security if tech
Personnel management
Hardware & Software
Governance of Information - Info Disclosure Policy should inc
Objectives & Principles of the disclosure
To keep stakeholders informed about the co to enable them to make informed decision
Info should be accurate, accessible, timely, complete, balanced between positive & negative
Authorised Persons
Should set up who is authorized to disclose what info to which stakeholder group
These ind co-ordinate the statements that they will be making to their audience
Public Info
Should set up what info should be public
Confidential Info
Should set up what info should be kept confidential, who will have access & steps taken to protect that info
Insider Info
If disclosed, would move co's share price
The handling of this info would be set out in public
Disaster Recovery Plans
Is a plan of what needs to be done immediately after a disaster to recover from the event
The disaster is of a nature unconnected with the co's business & outside of the control of management
Eg:
Natural Disasters (Fires, Flood, Storm)
IT Disruptions
Major Terrorist Attacks
most needed in industry where a lenghty/widespread shutdown of operations could be catasthropic
Should
Specify which operations are essential & must be kept going
Identify & analyse all potential threats to essential operation
Identify possible reactions to the threats to essential operation
Identify who should be responsible for keeping the public informed about the impact & recovery measures taken