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Global principles of corporate governance - Coggle Diagram
Global principles of corporate governance
G20/OECD Principles
Help policy makers, investors and other stakeholders assess and develop the legal, regulatory and institutional framework for corporate governance within a country
Ensuring the basis for an effective corporate governance framework
The corporate governance framework should promote transparent and fair markets and efficient allocation of resources. It should be consistent with the rule of law and support effective supervision and enforcement
The rights and equitable treatment of shareholders and key ownership functions
The corporate governance framework should protect and facilitate the exercise of shareholders' rights and ensure equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective redress for violation of their rights
Institutional investors, stock markets and other intermediaries
The corporate governance framework should provide sound incentives throughout the investment chain and provide for stock markets to function in a way that contributes to good corporate governance
The role of stakeholders in corporate governancne
The corproate governance framework should recognise the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs and sustainability of financially sound enterprises
Disclosure and transparency
The corproate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corproation including the financial situation, performance, ownership and governance of the company
The responsibilities of the board
The corproate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board and the board's accountability to the company and the shareholders
Basel Corporate Governance Principles for Banks
Provide a framework within which banks and supervisors should operate to achieve robust and transparent risk management and decision making and in doing so promote public confidence and uphold the safety and soundness of the banking system
The revised principles
Expand the guidance on the role of the board of directors in overseeing the implementation of effective risk management system
Emphasise the important of the board's collective competence as well as the obligation of individual board members to dedicate sufficient time to their mandates and keep abreast of developments in banking
Strenhen the guidance on risk governance, including the risk management roles played by business units, risk management teams and internal audit and control functions (the three lines of defence) as well as underline the importance of a sound risk culture to drive risk management within a bank
Provide guidance for bank supervisors in evaluating the processes used by banks to select board members and senior management
Recognise that compensation systems form a key component of the governance and incentive structure through which the board and senior management of a bank convey acceptable risk taking behaviour and re-inforce the bank's operating and risk culture
The Basel Corporate Governance Principles for Banks
Boards overall responsibilities
Boards qualifications and composition
Boards own structure and practices
Senior management
Governance of group structures
Risk management function
Risk identification, monitoring and controlling
Risk communication
Compliance
internal audit
Compnesation
Disclosure and transparency
Role of supervisors
ICGN Principles
The International Corproate Governnance Network was established in 195
International investor led organisation aimed at promoting effective standards of corporate governance in order to improve the efficiency of markets and economies globally
Published the ICGN Global Governcnane Principles and Global Stewardship Principles
Aim to enhance the dialogue between boards and investors by setting out the responsibilities of both parties