Question

Discuss five corporate governance provisions that are under a firm's control

Answer 1

5 Corporate governance provisions that are under a firm's control are-

1. Building a strong and capable board of directors and evaluate the performence regularly as it will help in identifying gaps and there should be a large number of capable independent directors who can question management and there should be regular board reviews.

2.Enhancement of board responsibility on reporting of financial statment could promote the transparency and bettter disclosures and it advocates that the responsibilities of different persons of the board should be properly defined .

3.There should be appropriate disclosures of related party transactions as it promotes transparency and fairness and a quality corporate governance advocates for proper disclosures regarding to related party transactions.

4.Enagagement in effective risk management related to different aspects such as legal risk management, Financial risk management, Industry related risk mangement. The board is responsible in maintaining strategic leadership in company risk tolerance and devloping and managing a framework for effective risk management.

5.The firm should emphasize on corporate social responsibility which helps in maintaing a good brand reputation among the society members and it will create a value in the long run and a quality corpoarte goveranance advocates for giving back to the society through corporate social works.