Turnbull report Flashcards
What is the full title of the Turnbull report
Internal Control: Guidance or Directors on the Combined Code
Who headed the Turnbull review
Nigel Turnbull, Exec Director Rank Group plc
Why did Turnbull come about
Financial scandals, e.g. Enron
Aims of Turnbull
Determine if London Stock Exchange Combined Code on Internal Control & Audit was fit for purpose or needed updating
What year was the Turnbull guidance updated
2004
What does Turnbull report look at
General business risk, e.g. financial, competitor, H&S, environmental
Strategic decision making from financial perspective
Risk based approach to creating / reviewing internal control systems
Who is status of Turnbull report
guidance only
Who does Turnbull report apply to
FTSE listed companies only
Often followed by non-FTSE companies in the supply chain
What are the steps to compliance with Turnbull report
Set company policy Organisation & personnel Identification of hazards & risk assessment Setting company objectives Internal control measures Performance measurement Monitoring & auditing Management review Necessary improvements
Advantages of following Turnbull report
Early entry into new business area Greater chance of achieving objectives Higher share prices Reduced fire fighting activities Better chance of changes being achieved More focus on doing things properly Lower borrowing costs Better strategy development Competitive advantage Fewer unwelcome surprises Better business continuity processes
How does Turnbull report influence H&S management
Compliance with Turnbull principles requires:
Holistic approach to managing risk
Preparation of clear policies which highlight management commitment
Risk evaluation by risk assessment
Management processes that control risk to an acceptable level
Effective Monitoring arrangements
Clear communication & reporting arrangements
Internal audit process
Annual review of risk controls at board level
Statement to shareholders on outcomes
