Fundamentals of Risk Management

Corporate governance model
349
TAbLE 
28.3
Evaluating the effectiveness of the board
Membership and structure
Does the board have the necessary range of knowledge, skills and experience?
Is there appropriate turnover of board membership to ensure new ideas?
Are the sub-committees of the board effective, with appropriate delegated authority?
Are board decision-making processes satisfactory, with adequate information available?
Do communication processes exist between board members outside board meetings?
Purpose and intent
Do all board members understand and share the vision and mission?
Do members of the board understand the objectives and position statements?
Is there sufficient knowledge and understanding of the significant risks?
Are board members sufficiently involved with the development of strategy?
Have measurable budget and performance targets been put in place?
involvement and accountability
Does the board have shared ethical values, including openness and honesty?
Are the established policies unambiguous and consistent with the ethics?
Do board members understand their duties, responsibilities and obligations?
Is there a feeling of mutual trust and respect at board meetings?
Are adequate delegation and authorization procedures in place?
Monitoring and review
Is there sufficient monitoring of performance using appropriate measurements?
Does the board challenge planning assumptions when and where appropriate?
Does the board demonstrate the ability to respond rapidly to changes?
Is there a mentality that demands continuous improvement in performance?
Does the board assess financial and other controls and seek assurance on compliance?
Performance and impact
Is there a satisfactory level of attendance at board, committee and other meetings?
Are board decisions and actions fully recorded and actions tracked and confirmed?
Are the agreed targets and performance indicators evaluated and assessed?
Is the impact of board decisions and actions evaluated in a timely manner?
Is there an emphasis on accuracy, honesty and open reporting to external agencies?

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