Bell Canada Enterprises

Meeting Minutes of Corporate Governance in Canadian firms’ governance

and risk management practices (1)

Time: Thursday: 2:00pm-3:30pm

Location: Brock University

Attendance: Echo, Jolie and Glory

Content: First, we reviewed the concept and ideas from the book and slides. Then, according to some research and related material we had found, we had a discussion from these following four aspects:

• What is the role and function of risk management in corporate governance?
• Why risk management is essential for corporate governance?
• How risk management used in corporate governance?

Discussion:

Echo: I think risk management and corporate governance principles are strongly interrelated. Each strategy an organization implements has related risks that must be managed in order to meet their goals.

Jolie: Yes, I agree. The function of risk management aims to assist organizations understand, evaluate and take action on their risks with a view to increasing the probability of their success and reducing the likelihood of failure.

Glory: Risk can be caused by internal and external sources. The external risks are those that are not in direct control of the management. These include political issues, exchange rates, interest rates, and so on. Internal risks, on the other hand, include non-compliance or information breaches and operational risk among others.

Jolie: Since risk management has close relationship with corporate governance, the ability to manage risk will help companies act more confidently on future business decisions.

Echo: Effective risk management gives comfort to shareholders, customers, employees and society at large that a business is being effectively managed and helps the company confirm its compliance with corporate governance requirements.

Glory: Following strong corporate governance principles that focus on risk management allows organizations to reach their goals.

Jolie: So the board should conduct a review of the effectiveness of the company’s risk management and internal control systems. The review should cover all material controls, including financial, operational and compliance controls.

Echo: Besides, the board should establish formal and transparent arrangements for considering how they should apply the corporate reporting and risk management and internal control principles and for maintaining an appropriate relationship with the company’s auditor.

Meeting Minutes of Corporate Governance in Canadian firms’ governance