The Certe resource centre covers a range of helpful tips for managing Governance, Assurance and Risk within your organisation.
1. Analysing Risk Once all risks have been identified, each risk is analysed in terms of consequence and likelihood. The consequence is defined as the outcome of an event expressed qualitatively or quantitatively, being a loss injury, disadvantage or gain. There maybe a range of possible outcomes associated with an event. The likelihood is…
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The overall responsibility for an effective internal control framework rests with the Board. The Board must require the implementation of the framework, approve key policies and ensure management carry out the organisational business within the set parameters. The Board and Audit Committee have the responsibility for the ongoing oversight of…
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The practice of corporate governance has evolved, as Kiel and Nicholson remind us, with the growth of the capitalist system and the development of world economies.[1] In the current climate of corporate Australia, the close attention being paid to corporate governance issues is being driven by two key factors: Investors and…
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The Audit Committee operates to aid the Board of Directors discharge its obligations relating to due care, diligence and skill. One of the primary objectives of the Audit Committee is to strengthen communication between the Board of Directors, senior financial management and external parties. A further objective is to improve…
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The Committee of Sponsoring Organisations of the Treadway Commission (COSO) was established in the United States after the excesses of the 1980s and the associated corporate collapses. Its role was to research the causes of these collapses and recommend improvements in governance and control systems for corporations. The Treadway Commission…
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The internal audit function is a fundamental element of corporate governance structures within most organisations. It operates primarily to provide assurance to executive management that the internal control structure of the organisation is effective. Internal audit assists the Audit Committee in discharging its governance responsibilities. Internal audit has no direct…
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Risks are defined as an event (or something happening that gives rise to uncertainty and that may have an impact on the organisation’s desired strategic objectives. The risks identified may include those arising from both internal and external influences on operations and practices. External influences are factors usually outside the organisation’s…
Read articleThe key elements to successfully implement a risk management program are: Executive commitment: The active ongoing support of the Board, CEO and senior management is of vital importance – tone at the top. In addition, identifying a member of staff in a senior position to ‘champion’ the risk management program is…
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The problem that many organisations face when reporting risk profiles to say the Governing Board is that they find that many risks in the risk management system that have been identified are operational . This reason is that in many cases the CEO has on delegated the responsibility to implement an enterprise wide…
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