The Role of the Board of Directors in Internal Control and Value Creation
A one-day interactive program for Certified Risk Management Professionals (CRMP) "Indonesia PRiMA (Professional in Risk Management Association)" and "LSPMR (Lembaga Sertifikasi Profesi Manajemen Risiko) Indonesia" Jakarta, Indonesia. In Cooperation with Dr. Gregory F. Maassen and F. Antonius Alijoyo.
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The introduction of new legislation such as the Sarbanes Oxley Act in US, the 4th and 7th Directives in the EU and the new Company Law and Corporate Governance Code in Indonesia emphasize the importance of risk management and sound governance systems.
In addition, risk management standards such as AS/NZS 4360, ISO 31000, COBIT and COSO are providing directors and their companies practical guidelines for the implementation of Enterprise Risk Management (ERM) systems.
Surveys nevertheless indicate that boards of directors are often not aware and/or satisfied with the risk management practices of their firms. Recent corporate governance and (ERM) failures also suggest that many corporations are struggling with the complexity and implementation of ERM-systems.
Corporate governance and Enterprise Risk Management are essential to the implementation of systems that regulate the relationship between boards of directors, stockholders, top management, regulators, auditors and other stakeholders of corporations. Of importance to this program is the recognition that boards of directors are essential to the design and implementation of ERM-systems. The board has the responsibility to ensure that corporations comply with modern ethical and economic standards, that risks are identified and mitigated (when needed), and that management is accountable to financiers, shareholders and other stakeholders.
To understand the role of Indonesian boards of directors and commissioners in this process, the program builds on many practical and recent examples of corporate governance and ERM-failures (business irregularities and the 2008 credit crisis) in Anglo-Saxon, Continental-European and Asian financial markets.
This practical program focuses on participants using tools and strategies to interact and communicate with directors and commissioners (Indonesian non-executives) on the importance of ERM-systems and corporate governance as tools for companies to create value and attract investments.
The presentations and lectures are designed to encourage participation and debate of real life cases. The course materials are designed for Certified Risk Management Professionals (CRMP) and make reference to the Indonesian Good Governance Code, the new Indonesian company law, COSO 1992, 2006 and 2008 standards, AS/NZS 4360, ISO 31000, COBIT, AS5 and other standards.
The main objectives of this program concentrate on participants’ understanding of:
- Developments in board structures of listed corporations in Anglo-Saxon, continental-European and Asian countries and forces that shape internal and external corporate governance systems;
- The emerging role of Audit and Risk Committees in the implementation of ERM-systems;
- The role corporate governance and ERM play in attracting financing;
- The relationship between corporate governance, ERM and the financial performance of companies;
- Boards’ perspectives on ERM;
- ERM change management;
- Different board models and implications for boardroom dynamics and ERM acceptance; and
- Corporate governance and ERM as marketing tools to attract investments and create value.
Composition of Groups
One of the objectives of the program is to discuss ERM implementation strategies within groups. Participants work in small groups on various assignments and are invited to present an ERM implementation strategy to a board of commissioners as part of a board room simulation.
The following materials are available for registered users (course participants only):
- Work Sheets
- Working Materials
- Hand Outs
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