Please enable JavaScript.
Coggle requires JavaScript to display documents.
Summary of the King IV Principles - Coggle Diagram
Summary of the King IV Principles
Category 1
Leadership, Ethics & Corporate Citizenship
2. The governing body should govern the ethics of the organisation in a way that
supports the establishment of an ethical culture
3. The governing body should ensure that the organisation
is and is seen to be a responsible corporate citizen
1. The GB should
lead ethically
and
effectively
Category 2
Strategy, Performance & Reporting
5. The GB should ensure that
reports issued
by the organisation
enable stakeholders to make informed assessments of the organisation's
performance, and it's short, medium and long-term prospects
4. The governing body should appreciate that the organisation's core purpose, its risks and opportunities, strategies, business model, performance and sustainable development
are all inseparable elements of the value creation process.
Category 3
Governing Structure and Delegation
Committees of the Governing Body
8. The GB should ensure that its
arrangements for delegation
within its own structures
promote independent judgement
, and assist with the balance of power and the effective discharge of its duties
Evaluations of the Performance of the Governing Body
9. The GB should
ensure that the evaluation of its own performance and that of its committees
, its chair and its individual members,
support continued improvement in its performance effectiveness
Composition of the Governing Body
7. The governing body should comprise the
appropriate balance of knowledge, skills, competence, diversity, independence
for it to discharge its governance responsibilities objectively and effectively.
Appointment and Delegation to Management
10. The GB should ensure that the appointment of, and delegation to, management
contribute to role clarity and the effective exercise of authority and responsibilities
Primary role and responsibility of the Governing Body
6.The governing body should serve as the
focal point
and
custodian of corporate governance
in the organisation
Category 4
Governance Functional Areas
Compliance Governance
13. The GB should
govern compliance
with applicable laws and adopted, non-binding rules, codes and standards
in a way that supports the organisation in being ethical and a good corporate citizen
Remuneration Governance
14. The GB should ensure that the organisation
remunerates fairly, responsibly
and
transparently
so
as to promote the achievement of strategic objectives
and positive outcomes in the short, medium and long term
Information and Technology Governance
12. The governing body should
govern information and technology
in a way that
supports the organisation in setting
and achievingits
strategic objectives
Assurance
15. The GB should ensure that
assurance services
and functions
enable an effective control environment
, and that these
support the integrity of information for internal decision-making
and of the organisation's external reports
Risk Governance
11.The governing body should
govern risk
in a way that
supports the organisation in setting
and achieving its
strategic objectives
Category 5
Stakeholders
16. In the execution of its governance role and responsibilities, the
GB should adopt a stakeholder-inclusive approach
that
balances the needs, interests
and
expectations of material stakeholders
in the best interests of the organisation over time
Study hints:
Once you are comfortable that you understand the best practices for a category, see if you can remember what the category is trying to achieve by re-doing the mind-map of the category and the principles only - can you remember all the principles for that category? What are the key words for each principle (you don't have to remember the principles word for word, you must understand them in your own words and remember what their purpose and meanings are, this is far more valuable to you, because then you will be able to identify concepts in a case study or question and be able to apply what you know should and should not be done to that, rather than trying to remember a list of principles word for word and getting lost and frustrated because you can't remember them
Once you've mastered a category's purpose and principles, expand your mind map for the category to remember a few of the best practices for each principle. You will never remember 100% of all of these, so set yourself a realistic number to remember - those that are general, easy and make sense, and get comfortable with those first
Build mind-maps or other visual tools out of the categories, and the best practices for each
Try to study each category on its own to start off with, to reduce the volume of what you are trying to understand.
Once you're comfortable with all the categories individually, bring them together back to the whole picture, watch the videos again and see how it all comes together and makes sense.