Corporate Governance for Financial Institutions

The following topics will be covered in this week long training programme:

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 participant’s countries
• Standards-driving bodies and evolving principles
• Formative regulatory bodies including OECD, Basel Committee, SECs and CMAs, Central Banks

Main Components and Principles

• Eight principles which underpin every system of governance
• OECD Code core concepts and 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

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