KEY ELEMENTS OF BEST PRACTICES -BANKING SCREENING TOOL(swiss)

KEY ELEMENTS OF BEST PRACTICES -BANKING SCREENING TOOL(swiss)

Key risk: Commitment is the foundation for sound corporate governance. If the company is not entirely committed, it means that its corporate governance is simply window-dressing. In this case the risk of poor governance is higher than it may first appear. A company that is not committed,or poorly understands its corporate governance duties is likely to disregard key areas of risk and accountability, including its responsibility to creditors, thus increasing the likelihood of loan default. Commitment to sound corporate governance is often best observed at the level of senior management and boards by seeing how the “tone from the top” disseminates through the company.

 

Source:IFC