Advanced Corporate Governance for Financial Institutions
Course Information:
Venue: | Duration: | Date: | Price: |
---|---|---|---|
Online | £2,500.00 | 20 hrs | Flexible |
In-House | Agreed with client | Flexible | POA |
London | 10 days | 14-Mar | £5,900.00 |
London | 10 days | 11-Jul | £5,900.00 |
London | 10 days | 7-Nov | £5900.00 |
Who should attend?
- Managers and executives who want a deep appreciation of the critical role of corporate governance
- Regulators who are developing and implementing codes and standards
- Board members who have clear responsibilities and obligations which they need to understand and exercise
- Audit committee, nominations committee and other committee members who need to explore their roles and purposes
- Company secretaries who have specific governance responsibilities
- Aspiring Board members who want to quickly increase their knowledge
- Senior staff who support the Board and its committees
- Internal auditors who will be verifying internal controls
- Other stakeholders and investors who need to monitor and challenge the application of standards
- In-house lawyers who have responsibilities for guidance and interpretation
Accreditations
Outcomes
- Understand corporate governance of the international financial sector
- Develop and apply local codes to their own environment
- Understand the applicability of their own existing practices and structures in comparison with growing international best practice
- Appreciate the inter-dependence of Governance, Risk management & Compliance (GRC)
- Evaluate the key features of enterprise risk management
- Develop procedures and internal controls relevant to financial sector institutions
- Understand the triple-bottom line of corporate social responsibility
- Develop best practice in compensation and remuneration
COURSE TOPICS:
The World of Corporate Governance Today
- International events leading to governance reform
- Purpose and objectives of governance including agency risk and moral hazard
- US Sarbanes Oxley Act style legislation vs. UK-style voluntary code: focusing where possible on participants’ countries
- Standards-driving bodies and evolving principles
- Formative regulatory bodies including OECD, Basel Committee, SECs and CMAs, Central Banks
Main Components and Principles
- OECD Code core conceptsand guidance
- Listing requirements and continuous obligations
- Corporate Governance in the financial sector – raising the bar – what is special about banks and bank governance?
- Basel Committee’s guidance on enhancing corporate governance for the banking sector
- Review of European Union’s approach to Corporate Governance in Financial Institutions
Eight principles which underpin every system of governance:
The Governing Body
- What does a “Good” financial institution look like
- Alternative board structures – dual and unitary boards
- Different types of board members: their roles and responsibilities, including the Secretary to the Board
- The growing importance of the INED
- The vital role of Board Committees in the new era of governance, including the audit committee, nominations & remuneration committee and the risk committee
Corporate Governance, Risk Management and Compliance (GRC) in Financial Institutions
- The growth and linkage of these three topics in finance
- The main components of Enterprise Risk Management (ERM)
- The central role of internal controls and linkage to ERM
- Best practice compensation principles and standards
- Shareholders, depositors and other stakeholders need for disclosure and transparency
Corporate Social Responsibility (CSR)
- Defining CSR
- The link between CSR and Corporate Governance
- CSR – economic, legal, ethical and discretionary aspects
- CSR and financial institutions – is it just a public relations exercise?
- Where does the regulator fit in?
- The course will end with a multi-choice questionnaire to assess the level of knowledge gained and to fresh and assist the retention of new information
Main Components and Principles of Internal Controls
- The definition and purpose of internal controls
- The five components of the original COSO internal controls framework
- Integration of the original COSO control framework into COSO Enterprise Risk Management framework (ERM)
- Linking COBIT to COSO – Information technology framework and internal controls
Financial Sector Regulators and Internal Controls
- The three categories of objectives for internal controls
- COSO internal controls framework – the expanded 2013 revision
- The new seventeen principles – practical application to provide comprehensive controls
- The strong link between Basel II operational risk management and COSO
- Inherent limitations of internal controls
The Control Environment
- The vital first step – establishing the management tone at the top and an institution-wide code of conduct reflecting integrity and ethical values
- Board and management’s delegation of authority
- Commitment to competence – attracting, developing and retaining the right human resources
- Performance measures, incentives and rewards
Types of Internal Controls
- Risk appetite and strategy established by the Board and risk response strategies
- Control activities, internal controls, responsibilities and uses through the eyes of different stakeholders
- Inherent and residual risks
- Reporting and assurance