Company board should lead the assurance process

IN our recent corporate governance seminar, we asked participants to vote on their expectations of the Board. More than three quarters of them said that an effective board should focus on strategies and long-term growth of the company, particularly to ensure that the company has a sustainable business model.

AN AGE OF NEW EXPECTATIONS

All participants unanimously agreed that the Board is responsible for fostering a conducive corporate culture that is aligned with its business strategy. They are also responsible for leading risk assurance by defining corporate objectives, agreeing on how objectives are to be achieved by the management, and setting expectations for the assurance providers.

However, only 50 per cent of the participants thought that the average Board has a comprehensive understanding of the risks their company faces. Similarly, only half of the participants agreed that Boards are actively participating in defining strategic objectives, risk appetite and risk tolerance limits for their co…