INDIACSR News Network
SINGAPORE: The Corporate Governance Council (Council) has released its Risk Governance Guidance for Listed Boards (Guidance) on 10 May 2012.
Global events since the 2008 financial crisis have underscored the importance of companies taking an integrated, enterprise-wide perspective of their risk exposure. There is heightened concern and focus on risk governance, and it has become clear that companies should have a sound system of risk management and internal controls to identify, assess, manage and mitigate risk. In this regard, following its review of the Code of Corporate Governance (Code), the Guidance is another key initiative by the Council to strengthen the corporate governance practices of listed companies in Singapore.
The Council intends the Guidance to provide key information on risk governance to all Board members. This would include factors which the Board should collectively consider when overseeing the company’s risk management framework and policies. The Guidance also spells out the Board’s and Management’s respective responsibilities in managing the company’s risks. The Guidance is not meant to be a new rulebook or to prescribe additional standards. Its purpose is to enhance the awareness of Board members, and spur them to work towards strong corporate governance in their companies.
Mr Alan Chan, Chairman of the Council, said, “The Guidance, with its focus on risk management, acts as a complement to the Code and enhances the framework for corporate governance of Singapore-listed companies. Along with other existing materials such as the handbook for directors published by the Accounting and Corporate Regulatory Authority, the Guidance will contribute to better awareness of Board responsibilities within Singapore companies. This will in turn enhance investor confidence and Singapore’s reputation as a trusted financial and business hub.”
The Guidance is available for download on the MAS website. (Click here to download the Guidance.)
The Corporate Governance Council, chaired by Mr Chan Heng Loon Alan, Chief Executive Officer of Singapore Press Holdings Limited, was established by the Monetary Authority of Singapore (MAS) in February 2010 to promote a high standard of corporate governance in companies listed in Singapore.
The Council consulted the public extensively on proposed versions to the Code, and submitted its recommendations to MAS on 22 November 2011 for consideration. (Click here to view the Media Release on the Council’s submission of recommendations to MAS on 22 November 2011.) MAS accepted all of the Council’s recommendations and issued the revised Code on 2 May 2012. (Click here to view the Media Release on MAS’ issuance of the revised Code on 2 May 2012.)
