THE INTERNATIONAL BUSINESS
Role of Board of Directors in Corporate Risk ManagementThe fifth Forum of corporate directors, members of the Boards of Directors of Russian companies, was organized by the International Business Leaders Forum (IBLF), Association of Independent Directors (AID) and PwC on April 18, 2013. The Forum was entitled “Role of Boards of Directors in Corporate Risk Management. View from the Top”. The Forum was held under the umbrella of the Russian presidency in G20 and B20.
The current complicated economic situation and increased corruption risks impose a number of challenges on corporate Boards of Directors. This being so, special attention should be paid to the strategies of corruption risk management, making it more consistent and sustainable.
In principle, an effective Board of Directors has everything required to address these issues successfully because independent directors have accumulated rich practical experience in various market conditions. Besides, they are better aware of the general economic and regulative environment and are less focused on day-to-day operations and short-term corporate financial targets than the management of the companies under their supervision. This allows them to assess the corporate strategy and potential risks in a more balanced manner.
In this context, the discussion was focused on a number of significant issues.
In his open-minded speech the Head of Department for Competitive Policy of the Moscow Government Gennady Degtev told about the contribution of IBLF and several Western companies in refining the public procurement procedure in the City of Moscow.
Another notable speech was made by Chairman of B20 Task Force on Transparency and Anticorruption Vice-President of the Russian Union of Industrialists and Entrepreneurs Andrey Bugrov who described the initiatives aimed at putting together corporate anticorruption methodology at the highest level.
“Tone at the Top”, mandatory participation of top leadership in corruption risk management – these factors were regarded by the audience to be the key ingredients of the anticorruption policy of an up-to-date successful company.
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