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Home arrow Management arrow Corporate Fraud and Corruption: A Holistic Approach to Preventing Financial Crises

Accountability

  • The board should present a fair, balanced and understandable assessment ofthe company's position and prospects.
  • The board is responsible for determining the nature and extent ofthe principal risks it is willing to take in achieving its strategic objectives. The board should maintain sound risk management and internal control systems.
  • The board should establish formal and transparent arrangements for considering how they should apply the corporate reporting, risk management and internal control principles and for maintaining an appropriate relationship with the companys auditors.

Remuneration

  • Executive directors' remuneration should be designed to pro-mote the long-term success of the company. Performance-related elements should be transparent, stretching and rigorously applied.
  • There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors. No director should be involved in deciding his or her own remuneration.
 
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