Objectives of Corporate Governance

Question 1

Which international text outlines corporate governance guidelines?

Answer 1

OECD Principles of Corporate Governance

Question 2

Which parties does the OECD Principles of Corporate Governance identify?

Answer 2

Company management, board, shareholders and other stakeholders.

Question 3

What is the purpose of corporate governance?

Answer 3

1. Maintain public trust and confidence.
2. Structure through which objectives of the company are set and means of attaining them.
3. Monitoring achievement of objectives.

Question 4

From a financial services perspective, what is corporate governance?

Answer 4

• Setting firm strategy and objectives
• Setting risk tolerance
• Day-to-day operation of business
• Protect interest of depositors, shareholders and other stakeholders
• Align corporate behaviour with laws and regulations.

Question 5

Whose responsibility is it to set out the governance structure of the organisations?

Answer 5

Board of Directors

Question 6

Why was the SM&CR introduced?

Answer 6

Reduce damage to consumer and strengthen market integrity.

Question 7

What must each senior manager have under SM&CR?

Answer 7

Statement of Responsibilities

Question 8

What are the Senior Manager functions under SMCR?

Answer 8

• Chief Executive
• Executive Director
• Partner
• Chair of Audit Committee
• Compliance oversight
• Money Laundering Reporting Officer (MLRO)