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Inside Internal Controls

News and discussion on implementing risk management

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Corporate Governance

An ounce of preparation

There is no need to reinvent the wheel in this crisis management initiative. There are many resources online and common-sense articles, checklists and manuals about crisis management.

 

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Learning the basics on GDPR’s right to be forgotten

To manage the Europe Union’s new GDPR properly, ethics and compliance officers need to consider many parts within their organization, from IT capabilities, exception clauses, and customer service demands. And these parts must be managed and organized in such a way that they work together so that they do not fall apart.

 

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New GRC guidance from OCEG might be missing a crucial point

GRC is “the integrated collection of capabilities that enable an organization to reliably achieve objectives, address uncertainty and act with integrity”. A new Guide from OCEG, A Practical Guide About GRC Metrics and Measurement, says, a major part of GRC is about “break[ing] down silos between governance, strategy, performance management, risk management, compliance management, internal audit and other departments”.

 

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Ethics & compliance leaders could use a good dose of marketing 101

Just as a brand isn’t what the company says about itself, but what other people say about the company, employee behavior is the final expression of your E&C marketing program’s success.

 

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When liability waivers are upheld

This case illustrates that waivers can be a complete bar to the right to sue and that participants being provided a waiver have the option to opt out of the activity if they are not comfortable with solely bearing the risk associated with it.

 

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Reporting on risk to the board

Those charged with reporting on risk to the board and to the executive team should understand what they are trying to achieve, what information they need to be successful and how they can help.

 

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Talking sense about technology risk and cyber

You have to have sponsorship from the CEO and throughout the company to really understand and diagnose IT risks, data security risks and business risks, and then prioritize them.

 

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Drafting interest rate calculation provisions in corporate finance transactions

If a loan document does not comply with the provision for calculating a “nominal” annual rate of interest in order to comply with section 4 of the Interest Act, then the interest rate is capped at 5% per annum. Commercial practice and appellate jurisprudence had confirmed that such provisions complied with section 4. Section 4 states:

 

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Don’t forget to audit controls!

It’s best to have management detect issues and for audit to assess whether those detective controls are adequate.

 

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Improve internal controls over fixed assets (Part 1)

Many organizations face challenges with recording and physically safeguarding fixed assets. Organizations must also meet disclosure and other requirements when they prepare audited or other financial statements, corporate tax returns (applicable to for-profit organizations) and T3010 Registered Charity Information Returns (applicable to charitable organizations). Accounting processes and procedures must facilitate these activities.

 

An idea to help drive effective risk management

We want all decision-makers to consider all the potential consequences of their decision (in fact, all the potential consequences for each option on the table) before making an informed and intelligent judgment. What if the quality of decision-making was a significant factor in assessing performance? Thus affecting compensation and career progression. This idea could help drive effective risk management.

 

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Ontario budget 2018: Financial services updates

The 2018 Ontario Budget includes a number of financial services related developments, with a strong focus on innovation.

 

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Your business and your will – Shareholders’ agreements

A Shareholders’ Agreement is a very important component of any business owner’s succession plan.

 

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Is the goal of risk governance taking boards in the wrong direction?

The board is discharging its responsibilities to ensure stakeholders get the performance they should: value creation as well as (and not just) value protection. The board should make sure the management team is effective in running the organization, and that is not done by focusing on a list of harms. Effective governance of an organization is limited if the board focuses on risks.

 

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Law Commission of Ontario launches consultations for its Class Actions Reform Project

The LCO’s Class Actions Project will invite significant commentary from plaintiffs, defendants, consumers and industry organizations as well as interested counsel and academics. The result of the consultation remains to be seen, but the consultation represents the first opportunity in a generation to objectively examine the impact of class proceeding legislation from an empirical perspective, and could profoundly affect the future of collective relief in Ontario.

 

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