Increasing board portal as corporate governance is strict
It’s true that more than half of the stock exchange listed companies in Australia already use the high-quality Diligent board portal – Diligent’s Boards .
But the new corporate governance requirements, which are all listed in the company, are not listed on the website.
The fourth edition of the Australia Securities Exchange (ASX) Corporate Governance Council’s Corporate Governance Principles and Recommendations published on 27 February 2019 – it’s the fruit of a long series of consultations with listed companies and institutional investors.
Under the terms of the revised Code, how should the boards and senior management of listed companies, and other organizations that apply the Code, address these new recommendations and comments on stricter organizational governance?
“The Boards and senior management must strike the right balance in their assessment of financial risk – in effect, the key risks that contribute to a company’s financial performance, and operational, regulatory, compliance and conduct risks.” Norton Rose Fulbright in a note published in February 2019. “The proper balancing of the consideration of various risks therefore needs to permeate down and Throughout organizations’ management structures. Importantly, the board and senior management must take the lead in ensuring that this is a balanced assessment throughout the organization. “
Board portal software helps boards manage risk and accountability
A high-quality board portal ensures control of risk and compliance related reporting. Board portal software establishes an approach that ensures the right:
- People get the right information at the right time
- Objectives are established
- Actions and controls are put in place to address uncertainty and act with integrity.
The board portal provides applications and materials that reflect a local context. The Australian Code of Corporate Governance makes a number of significant changes – these are particularly significant in relation to corporate culture and values responsibly. “
This includes establishing a whistle-blowing policy, and active creation and diffusion of an ethical corporate culture. The board wants to create search policies, and then find ways to manage them – all this involves consulting the library on the portal, and then using its secure communications facilities to drive implementation.
Overseeing Risk and Compliance
Monitoring compliance and risk must begin at the board level. It is the board that establishes what is the “right information” at the right time. These decisions can be made through a high-quality board portal which should have absolute secure communications.
The board should start by establishing a plan. A high-quality board portal includes applications to build and structure such a plan. The board can be task management with its implementation. Using the board portal’s communication facilities to see that the monitoring strategy is effective, and that the appropriate internal controls have been set up.
With data from internal controls, as well as management observations, the board’s audit and risk committees can be maintained. While the board portal itself is secured against threats, it collects the information needed by the audit and risk committees to oversee all cyber security across the organization.
The board portal can thus monitor governance and compliance changes, so that the board can work with them.
The board has an opportunity to use the board for risk management, because, with its help, they can break down silos of information – the board has the power, working with management, to enforce collaboration.
Advantages of using Diligent Governance Cloud in risk management
Diligent Governance Cloud, the most evolved and elaborate board and governance tool on the market, is ideal to enable the board for risk and accountability management. It fulfills many governance requirements. For example, the identification and management of risk can be handled with board portal applications. Regulatory and compliance requirements are updated automatically on the Diligent board portal. These are up to date, and ready to take action.
The board portal carries material on governance and risk management, ensuring that it does not remain unresolved. It also addresses record retention, as all board discussion, related planning, interaction with management. This can be recorded and archived for legal purposes.
Mitigate mitigated mitigate risk mitigated
The advantages for the organization, include:
- Reduced costs, duplication of activities and impact on operations
- Achieved greater information quality and ability to gather information quickly and efficiently.
Diligent’s Governance Cloud
The board of an organization can take all necessary action using it as its principle governance and compliance tool. Diligent’s Governance Cloud, the only integrated enterprise governance solution that enables organizations to achieve best-in-class governance, is an ecosystem of software tools. Stringent, the scope of governance evolves. The Governance Cloud allows boards of directors to meet the demands of the boardroom and beyond. With ability to select the products needed to boost performance within their allotted budgets.
Directors, general councils and corporate secretaries are realizing the need for governance solutions. Boards need products to help in a highly secure, confidential platform.
Contact Diligent to find out more email@example.com .
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