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king VI - Coggle Diagram
king VI
Leadership by the governing body (Part 4: page 40)
17 Principles
Lead 2. Ethics 3. Responsible corporate citizen 4. Value creation process 5. Performance (short, medium and long-term) 6. focal point and custodian 7. Discharge its governance role and responsively objectively and effectively 8. Delegation promote independent judgement 9. Evaluation of own performance 10. Management contribute to role clarity, exercise authority and responsibility
11. govern risk to support in setting and achieving strategic objectives
12. Govern Technology and information 13. Compliance 14. Fair enumeration 15. assurance services and control environment 16. Stakeholders-inclusive approach 17. responsible investment
Principle 11 (Part 5.4)
Risk governance
The governing body should govern risk in a way that supports the organization in setting and achieving its strategic objective
Governing body should:
Assume responsibility for governance of risk, setting direction, how risk should be approached and addressed
Risk integral to the way it makes decision and executes it duties
Approve policy that articulates and gives effect to its set direction on risk
Evaluate and agree nature and extent of the risks a) Risk appetite b) Limit potential loss
Delegate risk management to management
Ongoing oversight a) assessment of risks and opportunities b) Assessment of potential upside, opportunity, presented by risks with potential negative effects c) Assessment of organization's dependency on resources and relationships d) Design and implement of appropriate risk response e) Establish, implement business continuity arrangement f) Integrate and embed risk management in activities and culture
should consider need to receive periodic independent assurance on the effectiveness
should disclose The nature and extent of the risks and opportunities organization is willing to take without compromising sensitive information
Disclose: a) Overview of the arrangement for governing and managing risk b) Key areas of focus during reporting period, including objective c) Action taken to monitor the effectiveness of risk management and outcomes were addressed d) Panned area of future focus
Governance role and responsibilities
Steers and sets strategic direction | Approves policy and planning | Overseas and monitors | Ensures accountability
Practices
Governance outcome
Ethical culture | Good performance | Effective control | Legitimacy
Report on corporate governance for South Africa 2016