2.6 The G20/OECD Principles of Corporate Governance

Question 1

The G20/OECD Principles of Corporate Governance provide a w_________ benchmark for good corporate governance practice and for supervisory a_________ of this practice.

Answer 1

worldwide

assessment

Question 2

One of the key principles of the G20/OECD Principles of Corporate Governance relating to risk management is:

Ensuring s___________ with a controlling interest do not force excessive risk taking to generate short term returns because their limited l_______ may help insulate them from the costs of the risk

Answer 2

shareholders

liability

Question 3

One of the key principles of the G20/OECD Principles of Corporate Governance relating to risk management is:

Prevention of u____________ or illegal practices through the use of w________________ controls

Answer 3

unethical

whistleblowing

Question 4

One of the key principles of the G20/OECD Principles of Corporate Governance relating to risk management is:

P______ disclosure to ensure that stakeholders have information on all reasonably foreseeable m_______ risks

Answer 4

Public

Material

Question 5

One of the key principles of the G20/OECD Principles of Corporate Governance relating to risk management is:

The b_____ is responsible for overseeing an organisation’s i______ control and risk management systems.

Answer 5

board

internal

Question 6

How are the G20/OECD Principles of Corporate Governance incorporated in the UK?

Answer 6

Through the UK Corporate Governance Code

Question 7

What was the key finding of a 2014 OECD peer review on risk management and corporate governance?

Answer 7

In general, risk management requirements are too focused on financial risk controls and should cover a broader range.