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1MDB Cases - Coggle Diagram
1MDB Cases
Causes of Problem
Causes
Poor risk management
Internal Control and accountability failure
Frail BOD roles
fraudulent activities
SWOT Analysis
Advantatges
Benefiting the Advisory Board
Financial Stability guarantee
Disadvantages
Risk of politician involvement
Difficulties in Identifying money laundering crimes
Decision Criteria and Alternative Solution
Decision Criteria
Board of Director Roles
Encourage a strong culture of corporate governance within a company
Evaluate, question, and decide management proposals and follow its implementation by management
Track and review management performance
Investment Risk
Evaluate the various risks that will impact its efficiency to see if the investment is ideal for the company
Corporate Governance Principles
Transparency
Fairness
Responsibility
Accountability
Alternative Solution
Evaluate Board Performance
Build an adequate governance infrastructure
Appoint Competent Chairman and Board Members
Recommended Solution, Implementation and Justification
Recommendations
Adopt to CARE principle
Clearly accepted division of responsibilities
Establish an audit committee that comprising a majority of independent members
Contingency Plan
Provide an effective regulation of sovereign wealth fund investments
Establish the international standards for sovereign wealth fund activities
Statement Of Problem
Problem
the presence of breach of governance of a sovereign wealth fund that happened to 1MDB