Monthly Archives: April 2015

Archived Posts

April 30, 2015 by: James Bone Categories: Risk Management Risk Oversight Solutions: Reinventing Internal Audit by Tim Leech

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Many internal audit departments have not assessed and reported on risks to the organization’s top strategic/value-creation objectives, or the effectiveness of its overall risk management framework. According to Enhancing Value Through Collaboration, an IIA Pulse of the Profession report, internal auditors
surveyed dedicated a mere 8 percent of resources to their company’s
strategic objectives in 2014.

According to Enhancing Value Through Collaboration, an IIA Pulse of the Profession report, internal auditors surveyed dedicated a mere 8 percent of resources to their company’s strategic objectives in 2014.

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by: James Bone Categories: Risk Management Dey Report on Corporate Governance

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Good corporate governance is an essential part of well-managed, successful
business enterprises that deliver value to shareholders. Practices that better
protect investor interests can only strengthen our capital markets.
Five years ago, the Toronto Stock Exchange published “Where Were The
Directors?”, a landmark study on corporate governance. Since then, standards
of corporate governance have improved in boardrooms across Canada.
Under the leadership of Peter J. Dey QC, a prominent lawyer and one-time
chairman of the Ontario Securities Commission, the TSE’s Corporate
Governance Committee report heralded a new era of increased attention to
the responsibilities of Canadian boards as stewards of shareholder value.

April 25, 2015 by: James Bone Categories: Risk Management Singapore’s success story – A model for Enterprise Risk Management

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An article by James C. Wong, April 23, 2015 in The Business Times, entitled “A study in enterprise risk management” took an in-depth look at Mr. Lee Kuan Yew’s governance of Singapore. Mr. Lee Kuan Yew’s journey of leading Singapore through uncertain times and without the normal political and business partnerships from regional players shows the dogged determination of his leadership.
Lee Kuan Yew was born into a wealthy Chinese family that had resided in Singapore since the 19th century. After World War II, Lee studied law at Fitzwilliam College, in Cambridge, UK. In 1950, he was admitted to the English bar, but instead of practicing law there, Lee returned to Singapore to do so.
During the turn of the 20th century many colonized countries were gaining their independence and exploring new governance models to grow their fledgling economies. At the time, Singapore was a British colony and held Britain’s main naval base in the Far East. The country was ruled by a governor and a legislative council, mostly comprising wealthy Chinese businessmen who were appointed rather than elected by the people, according to one biographers account.
In the early 1950s, Singapore buzzed with talk of constitutional reform and independence, and Lee banded with other like minds to challenge the governing structure of the country. Soon breaking from this group and taking a more radical stance, in 1954 Lee became secretary-general of his own party, the People’s Action Party. Mr. Lee, Singapore’s Prime Minister, from 1959 until 1990 became the longest serving Prime Minister in world history.
Singapore’s stunning success story has been the subject of business books and studies of how Singapore Inc. was accomplished. The term “Singapore Inc.” was coined to describe how Mr. Lee and his close team changed a third-world country in a first-world economy which was considered improbable at the time. Singapore and Malaya were governed as one British territory until 1959 and was completely dependent on the relationship with its colonial benefactor. After independence was won Singapore was a separate country and in need of a plan to diversify its markets, address persistent unemployment and a host of other threats to its survival.
Not unlike many small emerging businesses, Singapore had to address the risks it faced as a small country with a small market. This is the unlikely story of an improbable journey of growth, cunning, collaboration and risk management that helped Singapore succeed.
Singapore faced many risks but the most pressing one was sustainability of economic growth. Recognizing the strategic opportunity to grow a common market with its neighbors Singapore’s leadership joined with Malaya, Sabah and Sarawak to for an ill-fated and short lived Malaysian Federation. Singapore soon separated from the Malaysian Federation after three years of feuds and internal bickering.
On its own again, Singapore faced the uncertainty of going it alone to compete in a region where close business and political ties were critical to success. A new model had to be created to attract investment and capital outside of its close sphere of regional influence. Singapore’s answer was based on several factors that Mr. Lee and his leadership team saw as factors that limited growth. Mr. Lee’s model focused on good governance, enforcement of the rule of law, strong internal controls for monitoring compliance and honest dealings. In short, Mr. Lee decided to stake the future of Singapore on it being an honest and safe place for investment and business dealings which in turn engendered trust.
Singapore’s success did not come overnight. It took four decades and a transformation from a low cost labor market to a skills based and technology oriented economy. Mr. Lee is now considered a visionary for the legacy of growth and prosperity experienced by the Singapore Inc. Singapore’s future is based on a foundation of risk management, good governance, strong internal controls and honesty. These values are valuable lessons for business and government leaders alike.
Singapore is a model of success because of the decisions Mr. Lee and his leadership team made about the kind of country they wanted to become. Building trust, developing certainty in a market of uncertain conditions, and developing sound business practice so that everyone knows and understand how to succeed is good business and good enterprise risk management.

http://www.biography.com/people/lee-kuan-yew-9377339 [Accessed 25 Apr 2015]

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April 18, 2015 by: James Bone Categories: Risk Management Report of the Independent Review Panel on Modernization of Comptrollership in the Government of Canada

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Snow storm in Boston

Comptrollership goes to the heart of executive and managerial responsibilities at the top, and throughout the organization. Comptrollership is not something that can be delegated entirely to specialists.

It is important to understand where comptrollership
is situated in the work and responsibilities of
management. The work of managing consists of
four elements: planning, organizing, integrating
and measuring.

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April 3, 2015 by: James Bone Categories: Risk Management NACD Directorship 2020® Views Key Market Forces Through a Boardroom Lens

Are boards assessing the impacts of economic and geopolitical disruption on the company’s long-term competitive position?

Morestock-photo-2230304-attractive-and-ambitious-businesswoman than 100 corporate directors convened to hear experts in the fields of economics and geopolitics discuss current and emerging trends. Douglas Rediker, a visiting fellow at the Peterson Institute for International Economics and executive chair of International Capital Strategies LLC, addressed the impacts on the business environment of domestic and international monetary policies and economic shifts.

Dan A. Alamariu, executive director and head of U.S. Country Risk for UBS, spoke about the effects of evolving geopolitical disruption on corporate strategy and the continued risk of cybersecurity attacks from overseas actors. Rediker and Alamariu were joined by board leaders and subject–matter experts from Broadridge, KPMG, Marsh & McLennan Cos., and PwC to explore the boardroom implications of these disruptive forces.

“Directors need to be prepared to operate in an increasingly complex and dynamic environment,” said Charles H. Noski, director of Avon Products, Microsoft, and the Priceline Group. “As the Report of the NACD Blue Ribbon Commission on Strategy Development advises, boards must rethink their approach to strategy oversight and engage with management more frequently on strategy development and course correction.”   Emerging technologies, and regulatory activity, coupled with a rapidly changing global environment, will create an even more challenging role for directors over the next decade. NACD Directorship 2020 identifies global forces that are expected to influence corporate strategy over the long term and enables directors to draw on the components of effective board leadership to help their management teams not only to anticipate the associated risks but also to capitalize on the opportunities these disruptive forces can offer.

“Brands can be irretrievably tarnished overnight,” said Michael T. Marquardt, CEO of Global Kompass Strategies and a director of both the American Cancer Society South Atlantic Division and Commonwealth Trust Co. “NACD Directorship 2020 helps directors see beyond the horizon to anticipate and prepare for market shifts that may dramatically impact the strategies of their organizations.”

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by: James Bone Categories: Risk Management Shadow Banking: The Money View

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Canada IIA Conference

This paper presents an accounting framework for measuring the sources and uses of short-term funding in the global financial ecosystem. We introduce a dynamic map of global funding flows to show how dealer banks emerged as intermediaries between two types of asset managers: cash pools searching for safety via collateralized cash investments and levered portfolio managers searching for yield via funded securities portfolios.

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