The intent of this risk theme is to ensure that regulated entities have a sound control environment, and an organizational structure that promotes good governance, accountability and oversight, as well as transparency in dealings with the AGCO.
The regulatory risks associated with this theme are:
- Lack of appreciation and understanding of critical elements of a risk-based control environment
- Lack of defined Board mandate and independent oversight of management
- No mechanism for reporting wrong-doing
- Inadequately documented management policies and procedures to define and align accountability skills and competence
- Lack of understanding about expected ethical behaviour
- Lack of transparency in decision-making
- Individual knowingly fails to comply