How efficient is the dialogue between those stakeholders?
Shareholders and regulators emphasize the direct relationship that should exist between the audit committee and the control functions. This is a guarantee of independence and objectivity. This direct relationship requires involvement, expertise and supervision by the committee.
Governeo assists you in clarifying and strengthening the relationship with the corporate control functions.
This service is usually organized in workshops that involves:
- The understanding of the nature and extent of the control
- The review of the methodology and the policies
- The clarification of the scope of control
- The analysis of the communication lines and reporting process
- Better circulation of information
- Greater relevance of risk analyzes and decisions
- Clearer support for control functions
The audit committee may also go one step further
- By promoting collaborations between control functions
- By encouraging implementation of new data analysis techniques
When I listen to the risk manager’s report on the annual risk assessment, I sometimes get the impression that we are not talking about the same company. Do we have a common understanding of the risk appetite, emerging risks and priorities? How can we create a common language and a consensus on this subject
With Governeo, we met the various control functions of the company and we explained how we want them to speak to us. On both sides, we need to better understand the methods and techniques, the level of materiality, the cost of the control, the limitations, etc.
By talking and listening to the managers in charge of the control functions in the company, we have a much better understanding of the challenges, risks and controls. This brings clarity and therefore better leverage at all levels of the business.