Question

In governance, what are the key responsibilities of: a. The board of directors? b. Senior management? c. Risk owners?

Answer 1

Governance is a system which helps the stakeholders in an organization have an organized mechanism for evaluating options, setting directions and monitor the performance, ultimately satisfying the enterprise objective.

Responsibilities of various stakeholders in governance process is as follows:

Board of Directors:
1. Setting the mission, vision and values of the enterprise.
2. Increase shareholder value by enhancing economic performance.
3. Conform to regulatory requirements

Senior Management:
1. Strategy and value creation.
2. Accountability to investors and authorities.
3. Assist, monitor and provide feedback to BOD on strategic decisions.

Risk owners:
1. Define risk for the enterprise and setup controls to mitigate risk.
2. Devise strategies and actions to maintain risk according to the risk appetite.
3. Continuously monitor the risk strategies and devise appropriate responses for risk and provide timely feedback to the Management.