QUEST FOR CONTINUED IMPROVEMENT AT WINNS
As part of our quest for continued improvement WINNS is currently assessing the effectiveness of its Board. Self-reflection and objectivity aren’t always an easy task and so as a starting point, WINNS have decided first to identify what makes a Board effective in order to grade ourselves accordingly
WINNS have shared their self-evaluation template with you at the end of this Blog.
WHAT IS AN EFFECTIVE BOARD?
- Provide direction for management
- Demonstrate ethical leadership - promoting defined culture and values
- Create a performance culture that drives value creation without excessive risk
- Make well-informed and high-quality decisions
- Create the framework for helping directors meet their duties
WHAT ARE THE 4 PRINCIPLES?
The Board of Directors must act following the four principles of governance;
- Accountability
- Transparency
- Fairness
- Responsibility
For the best interest of stakeholders and the business as a whole.
THE 7 PILLARS OF CORPORATE GOVERNANCE
- Clear Organisational Strategy
- Effective Risk Management
- Discipline and Commitment
- Fairness to Employees and Customers
- Transparency and Information Sharing
- Corporate Social Responsibility
- Regular Self-Evaluation
BOARD OF DIRECTORS
WINNS is managed under the Board's oversight. The Board also has direct responsibility for certain key matters, including the relationship with the Stakeholders. The Board's oversight function encompasses several responsibilities, including:
SETTING THE "TONE AT THE TOP"
The Board should set a "tone at the top" that demonstrates the company's commitment to integrity and legal compliance. This tone lays the groundwork for a corporate culture that is communicated to personnel at all levels of the organisation.
APPROVING CORPORATE STRATEGY AND MONITORING THE IMPLEMENTATION OF STRATEGIC PLANS
The Board should have meaningful input into the company's long term strategy for sales and marketing through operations delivery. The Board should understand the risks inherent in the company's strategic plans and how those risks are being managed.
SETTING THE COMPANY'S RISK APPETITE, REVIEWING, AND UNDERSTANDING THE MAJOR RISKS, AND OVERSEEING THE RISK MANAGEMENT PROCESSES
The Board oversees the process of identifying and managing the significant risks facing the company. The Board should agree on the company's risk appetite, and the Board should be comfortable that the strategic plans are consistent with it. The Board should establish a structure for overseeing risk, delegating responsibility to committees and overseeing the designation of senior management responsible for risk management (Context of the Company).
FINANCIAL REPORTING AND OTHER DISCLOSURES ABOUT WINNS PERFORMANCE
The Board should be satisfied that the company's financial reporting accurately presents its financial statements and results of operations. Other disclosures about the company's performance displayed meaningfully past results as well as future plans.
ALLOCATING CAPITAL
The Board should have meaningful input and decision making authority over the company's capital allocation process and strategy to find the right balance between short term and long-term economic returns for its owners.
REVIEWING, UNDERSTANDING AND OVERSEEING ANNUAL OPERATING PLANS AND BUDGETS
The Board oversees the annual operating plans and reviews annual budgets presented by owners. The Board monitors the implementation of the annual plans and assesses whether they are responsive to changing conditions.
REVIEWING THE COMPANY'S PLANS FOR BUSINESS RESILIENCY
As part of its risk oversight function, the Board periodically reviews managements plans to address business resiliency, including such items as business continuity, crisis management and cybersecurity.
NOMINATING MANAGERS AND COMMITTEE MEMBERS AND OVERSEEING EFFECTIVE CORPORATE GOVERNANCE
The Board, under the leadership of its nominating/corporate governance committee, nominates managers and committee members and oversees the structure, composition (including independence and diversity), succession planning, practices and evaluation of the Board and its committees.
OVERSEEING THE COMPLIANCE PROGRAM
The Board, under the leadership of appropriate committees, oversees the company's compliance program and remains informed about any significant compliance issues that may arise.
WINNS BOARD EFFECTIVENESS SELF EVALUATION
THE 7 PILLARS OF CORPORATE GOVERNANCE
I believe that the Board exhibits;
THE 4 PRINCIPLES GOVERNANCE
How well does the Board act following the four principles of governance for the best interest of stakeholders and the business as a whole.
IN MY OPINION THE BOARD OF DIRECTORS
For more information on how WINNS creates value for it's clients, please contact Ryan Stillwell on 01702 713100 or by email at ryan.stillwell@winnsservices.co.uk