Chapter 5 - Senior Management Competence And Governance Flashcards

1
Q

Board subcommittees

Name 5

A

Risk

Remuneration

Audit

Investment

Nomination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

UK governance code

LEARS

A

Leadership

Effectiveness

Accountability

Remuneration

Shareholder relations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Responsibilities of directors

API SAD?

A

Act in accordance with company’s constitution

Promote success of company

Independent judgement

Skill care and diligence

Avoid conflict of interests

Declare personal interest in transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Role of NED

Purpose?

Attributes - BEKS?

A

Custodians of governance

Critical friend

Assess board performance

Bring challenge and diversity of insight

Strategy
Performance
People
Risk

Behaviours
Expertise
Skills
Knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

FCA core competencies for SIF

MR BFG?

Apply to NEDs

A

Market knowledge
Risk and controls
Regulatory

Business model and strategy
Financial analysis and controls
Governance and oversight controls

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

FCA fit and proper requirements

A
Honesty
Integrity
Reputation
Competence and capability
Financial soundness
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Competency policy

Purpose?

FIT PM

A

Framework

Improve performance

Talent development

Performance Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Questions to test governance of competency?

A

Framework

Lines of reporting

Evidence and reporting

Record keeping

Review of policy and processes

Escalation

Plans to address issues

Communication

Reporting to regulator

Controls to ensure effective implementation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How to measure competence

A

Performance appraisal

Competency based interview/review

External or independent assessment

360 feedback

Peer review

Knowledge based assessment

CPD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Statement of Professional Standing

Who issues?
Four areas?

A

Accredited body like CII

Ethical code
Level 4 exam
Appropriate CPD
Approved Persons compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Board responsibilities

CRASM?

A

Compliance and integrity

Regulate the executive

Approve plans Accounts and budgets

Selection of executive, reward and Succession planning

Mitigate risk and supervise risk management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

FRC guidance on board effectiveness

2009 review of Higgs report

A

Effective board should not necessarily be a comfortable place. Challenge essential

Direction for management
Display ethical behaviour consistent with values
Performance culture that adds value
Decision making based on clear line of sight into business
Embraces evaluation of effectiveness of governance

NEDs should have formal tailored induction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly