Oversee the effectiveness of management’s internal controls and mitigation processes and monitor organisational compliance

Overview & Purpose

What This Standard Covers

This Standard outlines the governing body's responsibilities in ensuring effective monitoring of organisational compliance and internal control processes, promoting a culture of risk awareness and continuous improvement within the organization.

Performance Criteria

• Ensure rigorous processes for monitoring compliance with strategy and risk appetite.
• Implement communication and training across all levels related to risk management.
• Establish assurance processes for effective management controls.
• Regularly evaluate and improve existing processes.
• Foster a culture of continuous improvement and learning from failures in risk management.

Knowledge & Understanding Requirements

• Operations of management’s internal control and mitigation processes.
• Techniques for assessing effectiveness of these processes.
• Identification and management of weaknesses in internal control systems.
• Importance of timely escalation processes.
• Communication and implementation of necessary changes.
• Recognition of when specialist input is required.
• Cost-benefit analysis of operating controls.
• Techniques for providing assurance and testing of controls.
• Assessment of training needs in risk management.
• Ensuring independence and integrity in reports from validated sources.

Relevent Roles

• Managers and Senior Officials
• Directors and Chief Executives
• Senior Officials of Special Interest Organizations
• Finance Managers
• Chartered Secretaries
• Personnel, Training, and Industrial Relations Managers
• Chartered Accountants
• Management Accountants
• Company Secretaries