In the second of a two-part series examining how risk management can be leveraged to underpin sound governance, Ted Dahms examines the concepts of responsibility, accountability and assurance, and how they interact with effective governance
Recent collapses and partial failures of major listed companies serve to keep the topic of corporate governance in the public spotlight. Accompanying this phenomenon has been a call for greater regulation with the view that by creating a set of new rules greater compliance will result. The more regulatory position adopted by the United States in comparison to Australia and Europe's less onerous approach was discussed in 'Tuning in for the Results' in issue 46 of Risk Management magazine.
The danger with increasing statutory and regulatory compliance is increased resistance and a greater internal focus on compliance to the detriment of innovation and performance. There is another way, and this is outlined in Standards Australia's handbook entitled Governance, Risk Management and Control Assurance (HB 254-2005).
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