The Financial Reporting Council (FRC) UK Corporate Governance Code (2024) contains 18 principles (A-R).
These include key requirements, italicised below, which are readily delivered or enabled by an IMS.
SECTION 1 - BOARD LEADERSHIP & COMPANY PURPOSE
SECTION 2 - DIVISION OF RESPONSIBILITIES
SECTION 4 - AUDIT, RISK & INTERNAL CONTROL
* Mitigating the ‘Principal Risks’ identified by the Board is the responsibility of the company’s CEO and their Executive Team. Some, like ‘Regulatory Change’, can be mitigated to a large degree by strategically declaring ‘No-Go areas’. However others, such as ‘Insufficient Liquidity’, ‘a Major Safety Incident’, ‘a Major Legal Breach’, et al., can only be demonstrably mitigated by supplementing the business-directing fundamentals of purpose, mission, values and strategy with some more explicitly mandatory, company-wide controls in the form of Policies, Standards, Processes and Procedures which everyone within the company must comply with.
Each Executive delegates accountability for producing and complying with these controls to the members of the senior management team who report to them. These managers in turn supplement corporate requirements with the mandatory content and guidance they deem necessary to support compliance within their own Functional or Business area.
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