Course overview
'Corporate Governance in Banks and Other Financial Industry Entities' will focus upon the development needs of members of and advisors to Boards of Directors of banks and other financial institutions in both developed and emerging markets. The course is also relevant to executives within banks and other financial
institutions.
Summary of course content
- The policies and procedures of an effective corporate governance
system within the financial sector
- The tasks of the board
- International reporting requirements
- Investor relations and shareholder rights
- Risk assessment and oversight
- Leading corporate governance change
Methodology
The course will contain a variety of training activities that include:
- Practical presentations and lectures
- Group discussions
- Multiple case studies and examples taken from real life banking situations
- Board simulations, role plays, force field analysis and priority rankings exercises
Who should attend this training course?
- Main board and subsidiary board members
- Company secretaries
- Legal counsel
- Executive committee members
- Corporate governance executives
- Chief risk officers
- Internal audit officers
- Lawyers
- Accounting firm partners
- Auditors
- Senior rating analysts
Supporting publications
Day 1: Corporate governance in banks and other financial institutions – an overview
An overview of the financial industry
- Classification frameworks
- Recent corporate governance trends within the banking sector
Case study: The corporate governance impact of foreign financial institutions entry into the Chinese financial market
The business case for corporate governance
- The key principles and elements of corporate governance
- How corporate governance frameworks work effectively within a bank or other financial institutions
- How banks or other financial institutions are responding to corporate governance concerns and challenges
- The cost/benefit of corporate governance
- The business case for corporate governance in banks or other financial institutions to include examples from China, Australia, India, the US, the UK, Brazil, Korea and Romania
An overview of corporate governance frameworks and practices relating to banks and other financial institutions
- The UK Financial Reporting Council Stewardship Code (2010)
- The UK Walker Review of corporate governance in UK banks and other financial institutions (2009)
- The Basel Guidance: “Enhancing corporate governance for banking organizations” (2006)
- The OECD Principles of Corporate Governance (2004)
- Sarbanes-Oxley and Dodd-Frank corporate governance requirements in the US
- New Basel Capital Accord (Basel II and III)
The policies and procedures of an effective corporate governance system within the financial sector
- An overview of policies and procedures
- Questionnaire / self assessment of policies and procedures Examples of best practice policies
- To include templates and model documents on information disclosure, insider trading and related party transactions
Ethics
- Ethical challenges facing banks and how these may be addressed through a code of ethics. To include examples of ethical challenges facing HSBC.
Case study: Stanford International Bank
Day 2: The role of the board
Case study: Evaluating the performance of a financial institution using key performance frameworks
and indicators to evaluate financial institution performance
Evaluating the performance of the CEO
- Using key performance frameworks and indicators to evaluate CEO performance
The tasks of the board: an interactive activity
- The board’s governance role and responsibilities
- Differentiating managing from directing activities
- The nomination and appointment process and the role and structure of the nominations committee
- Succession planning
- Dysfunctional board characteristics
- Solutions to improve a board’s effectiveness
A role play / case study: evaluating the performance of the board
Director remuneration
- The role and structure of the remunerations committee
- Using frameworks and policies for determining non executive directors remuneration
- Using frameworks and policies for determining executive directors and senior executive remuneration
- Trends and challenges associated with remuneration
Case study: Barclays Bank
Financial stewardship and governance oversight issues
- Internal Capital Adequacy Assessment Process (ICAAP)
- Valuation
- Leverage challenges
- Dividend policy
- Stress testing
Case study: focusing upon stewardship issues
Day 3: Disclosure and transparency in banks
International reporting requirements
- The implementation of International Financial Reporting Standards (IFRS)
- The content of the governance report and good practice construction processes
- The content of recovery and resolution plans (“living wills”) and good practice construction processes
Users of bank reports and their information needs
- The key users of bank reports and their information needs
Investor relations and shareholder rights
- The importance of effective shareholder communications and the EU Shareholder Rights Directive
- The ownership reporting requirements and the impact of different types of ownership (e.g. concentrated / dispersed, state ownership)
- Shareholder engagement and activism
Case study: Bank of America
Information governance
- Information governance policies, systems and procedures
The role of the regulator in enforcing reporting obligations – UBS 2009: a case study on the enforcement of UBS reporting obligations on bank account holders in the US
Corporate responsibility and citizenship
- The business case for corporate responsibility and citizenship to include sustainability
Corporate responsibility and citizenship in South African Banks 2010: A case study on the impact of the
corporate responsibility and citizenship recommendations on banks in South Africa as a result of the King 3 Report on corporate governance
Day 4: Regulation, risk and the control environment
Regulation in the financial sector
- An overview of the changes in financial regulation in the region
Risk assessment and oversight
- Risk assessment and decision making frameworks including COSO II and other risk evaluation ssessment methods particularly those used by analysts. Also to include disaster
recovery and business continuity planning
Cast study: China Banking Regulatory Commission A comparison with other regulators
Case study: risk
Enterprise risk management: Bank of China (Hong Kong)
Internal controls and internal audit
- Internal control systems and procedures
- The role of internal audit
Case study: Svenska Handelsbanken
The audit committee
- The role and structure of the audit committee including its relationship with the external auditors
Leading corporate governance change
- Leading transformational change: a seven stage process
Corporate governance action planning
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Chris Pierce
Pierce is the Chief Executive Officer of Global Governance Services Ltd. He works with policy makers, directors and boards in Europe, Asia, Africa, the US and South America. Prior to becoming CEO, he was the Director of Professional Standards and Development at the Institute of Directors (IoD) in the UK. He has also held senior management positions in the Overseas Development Administration, British Airways and Leeds Business School.
Pierce has worked as an advisor to the boards of many banks, sovereign wealth funds, stock exchanges and financial institutions around the World. He has also conducted a number of board evaluations and corporate governance assessments of major financial institutions around the world.
Pierce has written extensively on director and board development issues and regularly speaks at international conferences. His qualifications include: an Economics degree, a Post Graduate Certificate in Education, a Masters degree in Science, a Masters degree in Philosophy and an MBA. He is a Chartered Company Secretary and Administrator, a Visiting Professor at Cass Business School, City University London, an Executive Fellow of Henley Management College, a Visiting Fellow at Cranfield Management School and a Fellow of the Royal Society of Arts. He is a member of the International Corporate Governance Forum, the Quality Audit Forum and the Institute of Business Ethics.
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This course has now expired please email us to find out when the course will next be running.