The Australian Securities Exchange's Principles of Good Corporate Governance were revised in 2007.
In particular, listed entities must decide whether to comply with the important revised Principle 7 — Recognise and Manage Risk — and the consequences of this decision. Compliance is optional, but failure to comply may alienate important stakeholders.
Principle 7 requires companies to make an informed disclosure about their management of material business risks, including ‘sustainability’ risks.
KPMG works with a range of listed entities, assisting them to achieve meaningful disclosure under the revised ASX Principle 7. Our experienced risk and governance professionals help clients to:
- define material business risks
- learn how to identify and analyse these risks
- ascertain the ‘reasonable expectations’ of stakeholders
- develop systems to manage business risks and attest to the effectiveness of this management
- design or analyse reports from management on the management of business risks.
We also assist with drafting sign-off documents, testing control frameworks, documenting the risk and control process, developing gap analysis and action plans and designing self-assessment controls.