Best Practice In Corporate Governance : Developing An Appropriate Structure for Your Organization

Introduction

Corporate governance is a key topic that has recently started attracting more attention in business schools and among legislatures, with this trend only increasing. While there are different models for corporate governance, all of them aim at organizing the relation between the company and stakeholders. Governance models start with Shareholder Wealth Maximization (SWM) that stresses owners' rights, as applied mainly in the US and UK. Other methods of governance, applied in Germany or Japan, for example, bring other stakeholders, such as the workforce and bankers strongly into play. In addition to these models, this course also covers the reasons why board members may be one tier or two tiers and includes discussions about board structure, committees, their functions and duties, the audit committee, and the appointment and remuneration committee. Other topics discussed are the role of the chairman and the effect of institutional investors. To deepen the Board's understanding of principles of sound governance, and to translate this into practice, lessons from within best-in-class organizations, and how they inculcate values throughout the organization and promote organizational values and effectiveness.

Objectives

What you will learn:

• List the essential fundamentals and significance of corporate governance
• Analyze corporate governance models and suggest improvements
• Assess the ethical and policy considerations underpinning shareholders, Board of Directors (BOD), auditors, senior management, and executives
• Decide on the corporate governance structure that is best suitable for the business model
• Deploy corporate governance best practices​
• Apply disclosures and transparency requirements issued by IFRS and other authorities
• To emphasize and reinforce a clear understanding of the role of the Board and the fiduciary responsibilities of individual directors to shareholders and depositors (for banks) and policyholders (for insurance companies).
• To equip directors with tools and strategies to build a dynamic and sustainable management team
• To emphasize the principal responsibility of the Board for promoting a strong risk control culture and sound ethical standards throughout the organization.
• To create a heightened awareness of the changing dimensions of risk.
• To explore plausible and extreme stress scenarios and how boards can ensure the organization’s ability to withstand shocks.
• To examine the link between risk and capital management, exploring what capital adequacy really means.
• To help boards appreciate their oversight role in risk management and the adoption of key risks and organizational structures for managing risk.

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

The course is suitable for all staff in management & supervisory positions, irrespective of their specific job responsibilities. Board members, senior managers, the managers responsible for:

• Corporate Governance
• Corporate Strategy
• Operational Risk Management
• Corporate Social Responsibility (CSR)
• Environmental Sustainability
• Public Relations, Human Resources, Marketing

Course Outline

Day 1:

• Corporate Governance in the 21st Century
• Directors’ Duties – What happens after a director is appointed to the Board
• Ethics: The Responsibilities of the Board for Ethical Standards
• Corporate Governance Structures

Day 2:

• Failure in Strategies
• Subprime, Financial Institutions Risk Taking
• Risks and Red Flags – Early Warning Signals
• Effective Boards – Board Composition, Selecting Directors, Characteristics of Effective Directors, Directors’ Training and Succession Planning

Day 3:

• Lessons from the financial crisis: Boards on the Hook, Board’s Responsibilities for Risk and Challenges for the Future
• Banking Risks
• Risk Mitigation and Managing the Risk Management

Day 4:

• Risk Governance and Oversight
• An Interactive Discussion on Risk Management Structures
• Enterprise Wide Risk Management (EWRM)
• Risk Organisation

Day 5:

• Catastrophic Risk and Stress Testing
• Capital Management Strategies
• Board Structures – Establishing Board Committees, Roles and Responsibilities