...What is transparency in the context of IT governance, and why is it important? The transparency of IT Governance is that it covers the culture, organization, policies and practices. According to the consulting portal in Necessary Frameworks for IT Governance; The Definition IT Governance directs and controls how an IT organization administers necessary IT services to its clients. IT Governance specifies the rights and responsibilities of the parties involved, such as customers, regulators and stakeholders. It defines the policies and procedures under which an IT organization functions, as well as the mechanism to ensure compliance with those rules and regulations. IT Governance also provides the structure through which the IT Organization’s objectives are set, and the means of attaining those objectives and monitoring its performance IT governance is important simple because it guarantees value and eliminate majority of risks and limits future risk. IT determines how well services are provided and how well the company is reaching its customers. Providing service can also expose the business to risk that can interfere with daily operations. Management must be able to make good decision that will minimalize risk. IT governance has the management’s ability to organize, control and direct the company’s IT activities and its objectives. In IT governance organizational structure, leadership and processes are utilized to control the resources and align IT. This also includes...
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...Corporate Governance | Should accountability, transparency and effective risk management be regarded as the most important principles of Corporate Governance? | | What actually corporate governance is and how it actually affects a corporation? What are the main players playing a part in corporate governance? These are the questions one must understand in order to see the role of principles like accountability, transparency and effective risk management in corporate governance. So corporate governance is defined as “the relationship between a company’s shareholders, directors, and management as defined by the corporate charter, bylaws, formal policy, and rule of law”. (Gallegos, 2004, p. 37). This definition clearly shows the relationship of a company’s shareholder, directors and management. But this definition is only limited to what are the main players of corporate governance. In order to understand its impact on a corporation or company, ASX defines it as, “Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimized. Good corporate governance structures encourage companies to create value (through entrepreneurism, innovation, development and exploration) and provide accountability and control systems commensurate with the risks involved’. (ASX Principles of Good Corporate Governance and Best Practices...
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...(NLSIU), M.Phil. (Law)Academic Associate – IIM Ahmedabad International Conference on Transparency & Accountability in Governance : Issues & Challenges ICTAG – 2012 October 13-14, 2012 2. 2. Outline of the presentation :-1. Introduction Outline2. Research Methodology3. Transparency – An Overview4. Some Initiatives on Transparency5. Issues & Challenges6. Concluding Remarks7. Video on Integrity Pact8. Q & A (c) K L Gupta 3. 3. (c) K L Gupta 4. 4. Governance:-“Governance is the manner in which power is exercised in the management of a country’s economic and social resources for development….……Good governance is synonymous with sound development management.” - World Bank (1992) (c) K L Gupta 5. 5. (c) K L Gupta 6. 6. Governance Good Governance (c) K L Gupta 7. 7. GovernanceGood Governance Journey of (c) K L Gupta Governance 8. 8. Good Governance:-Good governance means- ruling justly,- enforcing laws and- contracts fairly,- respecting human rights, property rights, and- fighting corruption…….. - Paul O’Neil, Treasury Secretary of US (2002) (c) K L Gupta 9. 9. Good Governance – Major Characteristics*:-1. Participation2. Rule of Law3. Transparency4. Responsiveness5. Equity & Inclusiveness6. Effectiveness7. Efficiency8. Accountability9. Strategic Vision10.Consensus Orientation*Source :- V K Parigi & Others, “Ushering Transparency for Good Governance”, available athttp://www.cgg.gov.in/workingpapers/Ushering_in_Transparency.pdf accessed...
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...AADIIEETYA KUMAR JHA Corporate Governance: Need & Significance in Nepalese Banking System Meaning and General Concept Corporate governance is a combination of corporate policies and best practices adopted by the corporate bodies to achieve its objectives in relation to their stakeholders. It is also the field of economics, which studies the many issues arising from the separation from ownership and control. The fundamental objective of corporate governance reforms is to enhance transparency and transparency enhances accountability. It is widely recognized that transparency enhances trust among the major players within the governance framework. Various definitions and principles have been introduced to stabilize the corporate governance among corporate entities. The definition presented by some institution is presented below. Corporate governance is the system by which companies are directed and controlled (Cadbury Report-1992) Set of relationships between a company’s management, its boards, its shareholders and other stake holders (OECD Principles) In brief, corporate governance is a set of process a entity's culture, policies, laws and institutional value that affect the way a corporation is directed, administrated or controlled. It is a combination of corporate policies and best practices adopted by corporate bodies in achieving its objectives in relation to their stakeholders. It aims to protect shareholder’s rights, to enhance disclosure and transparency, to facilitate effective...
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...[pic] ADVANTAGES OF GOOD GOVERNANCE IN A COUNTRY Governance definition varies from an institution to another, an author to another and from one setting to another. This paper intertwines various definitions of governance as a basis of understanding good governance, outlines the principles of good governance, and discusses the advantage of good governance based on six key principles with variance examples across the continent. 1.1 INTRODUCTION Governance refers to the manner in which public officials and public institutions acquire and exercise the authority to provide public goods and services, including the delivery of basic services, infrastructure, and a sound investment climate (World Bank, 2007). It is also the exercise of power or authority; political, economic, administrative or otherwise to manage a country's resources and affairs (Kefela, 2011). The United Nation (2008) has defined governance in terms of process of government action and how things are done, not just what is done. Governance covers the quality of institutions and their effectiveness in translating policy into successful implementation, which includes the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences (Kefela, 2011). The referred institutions are the bodies setting formal rules (property rights, rule of law etc) while taking...
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...Gleghorn What is transparency in the context of IT governance, and why is it important? How does the COBIT framework provide for internal audit and corrective action? The transparency of IT Governance is to cover the culture, organization, policies and practices. This type of transparency in the government financial management is very important in a way to produce a proper, complete performance measurement system and to provide insufficient disclosure of these performances information to the broader public. This is why the point of transparency becomes a measurement for health and security in governments, leadership and business in almost all the countries in the world especially in the well developed once, because the public certainly wants the government to be transparent. Information Technology settles how well services are provided and how good the company is satisfying its customers. By providing services the companies can also expose their businesses to risk that can affect with their daily operations and transactions. In this case management must be able to make precise decisions in a way to minimize any risks that could affect the company really badly. It's virtually impossible to have too much transparency or education about IT governance, in fact both of them can go well together and so the more transparency of the governance practices, the more confidence in the governance there will be. Companies with more effective Information Technology governance had more senior...
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...TRANPARENCY IN GOVERNANCE IS THE ULTIMATE KEY TO REFORMS INTRODUCTION India is a developing country. There have been innumerable barriers addressed so far which require the expansion of reforms in India. The barriers are corruption, illiteracy, unemployment, poverty, culture, religion, caste, etc. In such diverse environments, it is vital to have an effective and tolerant government and sustain development. Indians are well aware of good governance but are curtailed by these innumerable barriers. The closed approach caused by these barriers is the root cause for corruption in the country. India ranks very low in the Transparency index and is known for high levels of corruption. BARRIERS Slowdown in the growth of GDP , a virtual stagnation in industrial production, and the risk of loosing the investments grade rating by international rating agencies like Standard and Poor’s has rattled the government and industry. The policy makers are favoring the introduction of FDI in service sectors like retail, insurance as a means to reverse the slowdown in the economy. But sustained growth is possible only if there is a healthy manufacturing sector. In the last years India has hardly invested in the physical infrastructure which has hampered the development of manufacturing sector increasing the costs of transportation. India’s overdependence on the service sector and slow growth in manufacturing has been the reason for deceleration in the pace of economy. The presence of corruption...
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...[pic] SOUND FINANCIAL REPORTING IS A GOOD THING FOR BRINGING CONFIDENCE BACK TO THE CORPORATE WORLD Submitted By: Ahmed Shafiul Huq 801414063 Principle of Accounting (EIB505) Section: B Executive Master of Business Administration Submitted To: Mr. Mohammad Rakib Uddin Bhuiyan Assistant Professor Department of International Business Faculty of Business Studies EXECUTIVE SUMMARY A company’s financial reporting amalgamates important documents to create an effective spreadsheet to simplify the financial data of an organization. It captures much of the information that organizations prepare, publish, and use. Financial reporting plays an integral role in the capital markets and economic stability and growth, and efforts to enhance its quality are vital. A Sound Financial Reporting provides us relevant, meaningful, reliable, accurate and comprehensive reporting of management stewardship whether in the form of numbers or other operating data. It is increasingly important for businesses to be financially transparent and for governments to establish a sound regulatory environment for corporate financial reporting. Sound financial reporting can benefit business by some ways just like valuing business, easy to identify...
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...CORPORATE GOVERNANCE IN NEPALESE FINANCIAL SECTOR: DOES POLICY MATTER? Submitted To Research Committee Research and Consulting Service Department Nepal Administrative Staff College Submitted By Basanta Raj Sigdel Santosh Koirala June, 2015 Copyright: Nepal Administrative Staff College Recommended Citation Sigdel, B.R. & Koirala, S. (2015). Corporate governance in Nepalese financial sector: Does policy matter? Lalitpur, Nepal: Nepal Administrative Staff College. Declaimer: This study is funded by Nepal Administrative Staff College. The opinion expressed in this research report do not represent official position of Nepal Administrative Staff College and are those of the researchers. ACKNOWLEDGEMENT This research paper has been materialized in this form with the help of many individuals and institutions. First, the team extends profound gratitude to the respected respondents of banks and finance companies for their valuable and generous support without which the project would not have been successful. Similarly, we are thankful to the Research Committee of NASC and Research and Consulting Services Department for their continuous guidance, facilitation and support in this endeavor. ABSTRACT The study examines insiders' perspectives on the determinants of corporate governance in the Nepalese financial sector. For this, we use a 5-point Likert scale questionnaire developed by CLSA, modified and contextualized to Nepalese setting. The study...
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...Disclosure and transparency According to McGee (2009), the corporate governance framework should ensure timely and accurate disclosure is made of all material matters regarding the corporation, including the financial situation, performance, ownership and governance of the company. According to IOSCO (2010), disclosure and transparency are critical elements of a robust corporate governance framework as they provide the basis for informed decision-making by stakeholders. High quality disclosure and transparency helps the public understand the company’s activities, policies and performance with regard to environmental and ethical standards as well as the relationship of the company with the stakeholders. The Global Financial Crisis has demonstrated how poor quality disclosure and lack of transparency can mask excessive risk-taking and leveraging by global financial institutions. Hence, high quality disclosure and transparency not only serves to protect investors but helps regulators in maintaining market confidence and systemic stability. The strengthening of disclosures and transparency involves actions by a range of market participants as it covers processes from verification, the determination of information for the publication and communication. Quantitative and qualitative corporate information is then disseminated through various periodic reports such as the annual and quarterly reports, other disclosures and through various media or other stakeholder engagement sessions...
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...Corporate Governance to Combat Corruption ‘I call on member countries to work urgently with us to address major corporate governance failures. This will be a vital step to reinforcing market integrity.’ - Angel Gurría, Secretary-General, Organisation for Economic Co-operation and Development (OECD). The collapse of global financial markets in September 2008 has ignited a debate on what caused their quick undoing. As captured in the comments of the OECD Secretary-General, there is a growing sentiment that poor corporate governance is one of the forces to blame. It allowed the transparency, accountability and integrity of companies to be compromised and for abuses to go unchecked, particularly on matters of corruption. w w w. t r a n s p a r e n c y . o r g Table of Contents 1. 2. 3. Why is corporate governance critical? What is covered by corporate governance? Aligning corporate governance and anticorruption 4. 5. Recent reform efforts Moving the agenda forward Strengthening corporate governance to combat corruption What is Corporate Governance? For TI, corporate governance is understood to mean the “procedures and processes for how private sector organisations are directed, managed 4 and controlled”. This includes the relationships between, responsibilities of and legitimate expectations among different stakeholders (Board of Directors, management, shareholders, and other interested groups). Laws and regulations provide the framework on which corporate governance systems...
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...CORPORATE GOVERNANCE QUESTION: RELEVANCE OF CORPORATE GOVERNANCE TO A MODERN COMPANY SUBMITTED TO: DR. ONGORO LIST OF ACRONYMS: OECD: Organization for Economic Co-operation and Development QUESTION: DISCUSS THE RELEVANCE OF CORPORATE GOVERNANCE TO THE MODERN COMPANY INTRODUCTION Corporate governance has reached centre-stage in the global agenda. The principles and codes evolved in several countries have furthered the cause of efficiency, transparency and equity particularly in the interest of the shareholders. Sustainable shareholder value has become the mantra for corporate immortality translating eventually into welfare of the society. Corporate governance is based on the relationship between agents and principals (agency theory). Agency theory explains how best the relationship between agents and principals can be tapped for purposes of governing a corporation to realize its goals. The owners of capital (shareholders) are the principals while the agents are the managers. The principals select and put in place both governors (directors) and auditors and ensure effective governance system is implemented whereas the managers are responsible for the day to day operations. Therefore corporate governance involves the way in which the boards oversee the running of a company by its managers and how board members are in turn accountable to shareholders and the company. DEFINITIONS OF CORPORATE GOVERNANCE Corporate...
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...ROLE OF MEDIA IN PROMOTING GOOD GOVERNANCE Media are the storage and transmission channel or tool used to store and deliver information or data. Media are (mostly) non state actors who define themselves apart from the state and from all other societal actors (what Edmund Burke described as a “fourth estate”, distinct from government, church and electorate). While this notion of free and independent media acting on behalf of the citizen against both state and other interests is a widespread ideal, the reality of most media worldwide is complex, rapidly changing and extraordinarily diverse. Media can consist of everything from national newspapers to student magazines, global broadcasters to community radio, websites and blogs to social networks and virtual communities, citizen journalists to government mouthpieces. This briefing focuses principally on media – and to a lesser extent on linked information and technologies - at a national level within developing countries. The term media refers to several different forms of communication required to educate and make a socially aware nation. The communication forms can be radio, television, cinema, magazines, newspapers, and/or Internet-based web sites. These forms often play a varied and vital role in our society. GOVERNANCE Recently the terms "governance" and "good governance" are being increasingly used in development literature. Bad governance is being increasingly regarded as one of the root causes of all evil within our...
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...Why there’s a need to pass into law the Freedom of Information Bill? For me, the Freedom of Information Bill should be pass into law, because this bill is the most significant and very important law to our country, because it promotes good governance, accountability and to have transparency so we can prevent corruption and also every citizen has a legal right of access to information, records and documents held by the government and other public functions and authorities. But what are the purposes and the true essence of transparency and accountability in good governance of Freedom of Information Bill? They are just like a twin pillars of the good governance, we will put the transparency and accountability as a strategies to fight against corruption, to achieve and to surpass public financial management. These are the steps to generate confidence in government and regaining the people’s trust in it. These essentials will also encourage domestic and foreign investment to our economy. If the Freedom of Information Bill is enacted, there would be a transparency and accountability on government transactions and expenditures of public funds in short the government will be an open book. Everything will be expose, even the corrupt being done by some politicians will be exposed too. Just like the taxes we paid that we worked hard but we don’t know where it goes, where they spent these collected money? Maybe, they are the benefits and spend...
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...Green climate fund frauds and corruption 1.0 Introduction Climate change especially global warming has been a heated issue these years. There are more and more countries, organizations and people caring about the global climate. And there are more and more organizations and fuds whose purpose is related to climate emerging, in order to counter climate change. In 2010, the United Nations Framework Convention on Climate Change set up the Green Climate Fund at the Conference of the Parties 16. The purpose of the Green Climate Fund is to provide help and support for developing countries to reduce the emissions of greenhouse gas. However there are many disputes about the Green Climate Fund also, one of which is that the Green Climate Fund exists risks of fraud and corruption. The purpose of this report is to have a better understanding of Green Climate Fund fraud and corruption by analyzing the factors causing fraud and corruption and the measures to eliminate fraud and corruption. This report consists of four sections. The first section is the brief introduction of Green Climate Fund. The second section is the analysis of Green Climate Fund fraud and corruption. The third section is how to prevent this kind of fraud and corruption. And the last section is the conclusion. 2.0 The factors causing Green Climate Fraud and corruption At the Conference of Parties 16 in 2010, decision 1/CP. 16 established the Green Climate Fund. The Green Climate Fund as an operating...
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