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KING IV - Coggle Diagram
KING IV
OBJECTIVES OF KING IV
Promote corporate governance as integral to running an organisation and delivering governance outcomes
such as an ethical culture, good performance, effective control and legitimacy.
• Broaden the acceptance of the King IV by making it accessible and fit for implementation across a variety of sectors and organisational types.
• Reinforce corporate governance as a holistic and interrelated set of arrangements to be understood and implemented in an integrated manner.
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• Present corporate governance as concerned with not only structure and process, but also with an ethical consciousness and conduct.
- The governing body should evaluate and agree the nature and extent of the risks that the organisation should
be willing to take in pursuit of its strategic objectives. It should approve in particular:
a. the organisation’s risk appetite, namely its propensity to take appropriate levels of risk; and
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Risk governance
RECOMMENDED PRACTICES
- The governing body should assume responsibility for the governance of risk by setting the direction for how
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b. the potential positive and negative effects of the same risks on the achievement of organisational objectives.
- The governing body should delegate to management the responsibility to implement and execute effective risk
management.
- The governing body should exercise ongoing oversight of risk management and, in particular, oversee that it
results in the following:
a. An assessment of risks and opportunities emanating from the triple context in which the organisation
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b. An assessment of the potential upside, or opportunity, presented by risks with potentially negative effects
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c. An assessment of the organisation’s dependence on resources and relationships as represented by the
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e. The establishment and implementation of business continuity arrangements that allow the organisation to
operate under conditions of volatility, and to withstand and recover from acute shocks.
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- The nature and extent of the risks and opportunities the organisation is willing to take should be disclosed
without compromising sensitive information.
- The governing body should treat risk as integral to the way it makes decisions and executes its duties.
- The governing body should approve policy that articulates and gives effect to its set direction on risk.
- The governing body should consider the need to receive periodic independent assurance on the effectiveness
of risk management.