Chapter 2 Flashcards
What do shareholders of public companies do
Appoint directors who form a board and then elect a chair from their members
What do shareholders of public companies Chair do
Ensure meetings are run correctly
Organisations representative to the outside world
A - What at the two types of director
Executive director
Non executive director
A - What is an executive director
Works full time in the company
Given management responsibility for running parts of the business
Usually a CEO Or managing director
A - What is a non executive director
Works part time
Chosen for their expertise
Attend board meetings
A - What are the five main responsibilities for the board
- Regulation of the executive directors and other members to uphold shareholder interests
- Approve the report and accounts
- Selecting and appraising the CEO
- Overseeing risk management process
- Ensuring company’s integrity and principles are upheld
What is corporate governance
Sets the standard of good practice in relation to issues such as:
Board composition
Remuneration
Accountability
Relations with shareholders
Which rules require listed companies to report that they are compliant with he uk governance code
UK Listing rules
A - What is the link between the board and the management company
The CEO or managing director
What idoes a a company secretary do
Filling returns
Maintaining books
Informing companies house of any changes
What is a chief actuary
Statutory appointment for life insurers. But can be employed both life and non-life business
They are responsible for calculating claim reserves and pricing
What are the four management actions
Planning
Organising
Leading
Controlling
What are the three business components
Physical resources
Financial resources
Human resources
What are physical resources
Include all the assets used by the organisation that are at their disposal of the business. These include office space IT and websites
What are financial resources
Cash, bank loans, share capital offense that are available to the managers of the business to allowed to carry out its day-to-day operations
What are human resources
People who work for the organisation on a permanent or semipermanent basis
What are common communication barriers of effective communication
The size of the organisation
Lack of confidence
Language problem
Time problem
Training
What is the benefits of efficient internal communication
Brings about change in the culture
Achieve the low turnover of employees
Facilitates decision-making
Encouraging staff to be cooperative
Insures all staff or helping to meet corporate objectives
What 3 things make the action centred leadership approach
The task, the team, the individual
Under the action centred leadership what do a task needs
The leader should:
Define the teams goals and objectives and development work plans
Under the action centred leadership what do the team needs
The leader should:
Set an agree standards and build and maintain teen spirit
In action centred leadership what should the individual needs be
A leader should:
Agree individual objectives and give appraisals
When it comes to Organisations corporate culture what are the three factors
Norms: Problem-solving, timekeeping the way meeting are run.
Beliefs and values: For example we stand for quality
Management style: the behaviour of the mangers
What are the six appropriate management styles
- Open Door
- Autocratic
- Paternalistic
- Hierarchal/militaristic
- Democratic/consultative
- Chaotic/laissez fair
What is the Open Door management style
Managers are approachable by staff at all times
What is the autocratic management style
Control and power rests with a single individual usually the chief executive
What is a paternalistic management style
The company looks after its employees in a family way and employees respect the organisations management This style is sometimes perceived as to interfering
What is a democratic/consultative management style
Decisions are taken with prior reference to as many staff members as possible
What is a chaotic/laissez-faire management style
The manager is a mental any employees allowed to let their own ideas and creativity flourish
What are examples of support roles
Personal assistance, HR officers, facilities management
What are the two types of directors
Executive directors which are inside the company/sector
Non-executive directors which are outside the company advises there to challenge the processes of the company
Is a public limited company a quoted company
Yes
What do you quoted companies need to have
Non-executive directors
What is the role of the CEO
Most important decision maker alongside them would be the chairman
If you want to be floated what do you need?
you need a chair and non-executive directors i.e. two people at the top
What are the responsibilities of the board for a public company include
Overseeing the executive directors and other senior management to ensure they uphold the shareholders interest
Approving The companies report and accounts, annual budgets, strategy
Selecting, apprising and rewarding the CEO
Overseeing the process of risk management and ensuring the actions are taken
Ensuring the companies integrity and principles are upheld
Andy’s notes
Who would be responsible for this:
Economic capital model to assist in determining the capital to be held by the company
Finance director
Andy’s notes
Who would be responsible for this:
Stress and scenario testing to assist in the determination of the amount of extreme risk the company may be subject to
Finance director
Andy’s notes
Who would be responsible for this:
Proposals to the board on the form of capital
Finance director
Andy’s notes
Who would be responsible for this:
Preparation of a statutory accounts of a company for approval by the board and shareholders
Finance director
Andy’s notes
Who would be responsible for this:
Preparation of the financial information required by the FCA
Finance director
Andy’s notes
Who would be responsible for this:
Management of the investment portfolio
Finance director
Andy’s notes
Who would be responsible for this:
Management of debt, cash flow, liquidity and Treasury matters
Finance director
Andy’s notes
Who would be responsible for this:
Technical pricing of new and existing products
Chief actuary
Andy’s notes
Who would be responsible for this:
Calculation of claims reserves
Chief actuary
Andy’s notes
Who would be responsible for this:
Calculation of risk based capital requirements
Chief actuary
Andy’s notes
Who would be responsible for this:
Assessment of investment risk of funds supporting technical reserves plus modelling
Chief actuary
Andy’s notes
What are the four management actions
Planning, organising, leading, controlling
What are the two difference types of directors?
Executive director
Non executive director
What is an executive director
Inside the company/sector
What is a non-executive director
Outside the company advisors external challenge to the process of the company
What is a public limited company
A quoted company
What type of director do you quoted companies need to have
Non-executive directors
What is the role of the chief executive officer
Most important decision maker in the business. Alongside them would be the chairman
The main function of management in financial service sector is the facilitate a sustain the positive interplay between what
Do you organisation as a corporate entity
It’s employees
The external environment
Does Lloyds syndicate have a managing director
No as it is not a legal entity
What is the role of a chair
The chair board meeting. If you want to be floated you need a chair (and non-executive directors) two people the top
What is an executive director
Appointed by the board to run the company full-time can also be known as a CEO or managing director
What are non-executive directors
They work part time and are chosen for their particular area of expertise they can provide independent views on matters such as audit, management remuneration and risk management
What are these examples of
Overseeing the executive directors at the senior management to ensure they have hold the stakeholders interests and laws governing to conduct of the business
The responsibilities of the board for a public company
What are these examples of
Approving the companies report and accounts, annual budgets, strategy and other important plans
The responsibilities of the board for a public company
What are these examples of
Selecting, appraising and rewarding the CEO and insuring succession planning is actively addressed
The responsibilities of the board for a public company
Who is responsible for this
Overseeing the process of risk assessment and ensuring the necessary actions are adopted to mitigate against those risks
The responsibilities of the board for a public company
What are these examples of
Ensuring that the company is integrity and principles are upheld on critical matters, such as financial reporting, accuracy, legal and regulatory compliance as well as idea to the company is stated ethical standards
The responsibilities of the board of a public company
What is the main focus of the board for an insurance company
Underwriting strategy, financial management and capital management, risk management and operational effectiveness
What is corporate governance
Regulatory requirements that are controlled internally through the board and executive management
What does a UK corporate governance code set out
Board composition and development
Remuneration
Accountability and audit
Relations with shareholders
How do trade associations such as the CII and BIBIA operate
They have no shareholders or board of directors but our council were the chairman
Is this a responsibility for a finance director or chief actuary
The economic capital model to assist in the determination of the appropriate level of capital the company to hold
FD
Is this a responsibility for a finance director or chief actuary
Stress and scenario testing to assist in a determination of the amount of extreme risk the company may be subject to
FD
Is this a responsibility for a finance director or chief secretary
To the board on the form of capital to proposals hold in addition to equity capital such as subordinated debt
FD
Is this a responsibility for a finance director or chief secretary
Preparation of papers for the board to assist in the determination of the appropriate level of dividend to pay to shareholders
FD
Is this a responsibility for a finance director or chief secretary
Making recommendations to the board on the appropriate level of claims provisions to hold
FD
Is this a responsibility for a finance director or chief secretary
Preparation of a statutory accounts of a company for approval by the board and shareholders
FD
Is this a responsibility for a finance director or chief secretary
Making presentations to imagine the relationships with the investment analysts can you prepare a report of the company performance
FD
Is this a responsibility for a finance director or chief secretary
Preparation of the financial information required by the PRA
FD
Is this a responsibility for a finance director or chief secretary
Preparation of the management information for the executive team and the board
FD
Is this a responsibility for a finance director or chief secretary
Management of debt, cash flow, liquidity and Treasury matters
Fd
Is this a responsibility for a finance director or chief secretary
Management of the investment portfolio and the financial aspects of the planning process, the budgetary process and forecast process
Fd
Is this a responsibility for a finance director or chief secretary
Preparation for the reviews by rating agencies and planning for the statutory external audit conducted by the independent auditors
FD
Are all public companies obliged to have a company secretary
Yes as a result of the companies act 2006
Is this a responsibility for a finance director or chief secretary
Maintaining the company is statutory books
CS
Is this a responsibility for a finance director or chief secretary
Filing annual returns at companies house
CS
Is this a responsibility for a finance director or chief secretary
Arranging meetings of the directors of the shareholders
CS
Is this a responsibility for a finance director or chief secretary
Informing companies house of any significant changes in a company structure or management
CS
Is this a responsibility for a finance director or chief secretary
Establishing and maintaining the company is registered office as the address for any formal communications
CS
Is this a responsibility for a finance director or chief secretary
Ensuring the security of the company’s legal documents
CS
Is this a responsibility for a finance director or chief secretary
Deciding on the companies policy for the filing and retention of document
CS
Is this a responsibility for a finance director or chief secretary
Advising directors on their duties and ensuring that they comply with current legislation
CS
What is the chief actuary responsible for
Technical pricing of new and existing products. Calculation of claims reserves. Calculation of risk base capital requirements. Assessment of investment risk for fund supporting technical reserves. Plus modelling
What are the senior executive positions in a typical insurance company
Chief risk officer Head of internal audit Underwriting director Claims director Marketing director Head of HR Head of IT Strategy director Investment director
A - What are the four management actions
Planning, organising, leading, controlling
A - What are the three business components
Material resources, financial resources, human resources
What are physical resources
Office space, IT, telecoms, website and motor vehicles
What are financial resources
Funds are available such as cash, bank loans, share capital
What are human resources
People who work for the company
What are managers responsibility is
Hiring and training new employees Coaching employees Dealing with performance problems and terminations Monitoring performance Controlling expenses and budgets
A - what are the four key new skills required of a manager?
Earning the respect of team members and colleagues Focusing on customers Multitasking Mobility and a global outlook New management concepts
What does it mean by managers earning the respect of team members and colleagues
Need to develop interpersonal skills and empathy with other staff to treat everybody on an equal basis
What does it mean for managers when I have to focus on customers
They must be aware of the impact that the decisions have and acknowledge that their management policies must now be customer facing
What is meant by managers multitasking
Important skills for managers today include awareness of IT management, finance, accounting, human resources and sales and marketing
What does it mean by mobility and a global outlook for managers
Managers are expected to be able to travel and conduct business in different economic, cultural and financial environment
What is meant for managers new management concepts
Keeping abreast of new concept is an important skill
A - (In exam) What are the characteristics of effective internal communication
Accuracy, clarity, relevance, reliability, credibility and timeliness
What are the common barriers to effective communication
Size of organisation Natural reserve, lack of confidence Knowledge is power Language problem Problem of time Training The Grapevine For you to recognise the need to tell Inability to listen
A - What are the benefits of efficient internal communication
- Bring about change in the culture and structure of the business more quickly
- Encourage staff to be cooperative and innovative
- Ensure that all relevant staff are helping to meet corporate objectives
A - Under Dr John Adair what are the three things under action centred leadership
The task- The primary need to get the job done
The team- we need to build a cohesive unified team
The individual- where individual needs need to be met otherwise people can become frustrated
A - Under Dr John Adair’s action centred leadership what do the tasks need
Team goals and objectives Ensuring appropriate resources are available Developing work plans and define tasks Allocate the work and resources Control the work rate and quality
A - On Dr John Adair the action centred leadership what do the team needs
Set an agree standards and maintain discipline
Build and maintain team spirit and morale
Encourage communication and motivation
Appoint sub leaders
Train and develop the team
A - Under Dr John Adair action centred leadership what does an individual need
Agreedindividual objectives Attend personal problems Give praise and reward to individuals Train and develop Recognise and use individual abilities
A - What are the six appropriate management styles
Open door Autocratic Paternalistic Militaristic/hierarchical Democratic/consultative Laissez faire
