Nordic companies take the lead on the sustainability components of Governance, Risk Management and Compliance issues
Prompted by the global financial crisis, scandals and the negative public opinion on corporate oversight, directors and executives are looking for guidance on how to take the lead on governance, risk management, compliance and IT-security (GRC) issues and to address the potential threats and dangers the company is disposed to.
The Nordic countries are not typically associated with major corporate scandals involving fraud, corruption, bribes or creative accounting. However the impression of pristine integrity, ingenious reporting, transparency is fast changing and not entirely accurate.
Currently the Nordic countries are experiencing several major corporate scandals that has, in varying degrees of criminality, involved unethical and illegal corporate behaviour that is broadly speaking have resulted in misleading or inadequate financial disclosure of sophisticated Corporate Governance, Risk Management, Compliance or IT-Security activities.
Irresponsible & inappropriate corporate behavior
Sweden's corporate world is currently thrown into turmoil and the head of one of its most powerful business empires was sacked, following a scandal over the private use of corporate jets by executives. The scandal also exposed a convoluted system of cross-ownership in which executives sat on many boards and approved each others' expenses.
The CEO Anders Nyrén lead the massive investment house Industrivärden that had controlling stakes in companies such as Volvo, Handelsbanken Ericsson and SCA, the Swedish forestry and paper company.
The Danish scandals include the Genan accounting and fraud scandal, Atea bribed officials to get IT contracts, The IPO scandal that introduced OW Bunker, that eight months later went under due to a combination of alleged fraud committed by senior executives but primarily due to poor risk management.
Norwegian companies with governance and compliance criticism and issues include: Statoil, for adverse environmental impacts on oil sand; Intex a mining company for the destruction of ecosystems; Telenor, for corruption and poor working conditions and child labour among subcontractors and Yara for an important global corruption issue.
Management's role, duties, responsibilities and personal liability
The Nordic Governance Code requires that the board and senior management be accountable and must have a clear view of its role, duties, responsibilities and personal liability. Therefore has prompted these GRC issues to move on the top of the boards agenda.
The 9th annual European GRC Summit in Stockholm we will address the issues with cases on the corporate scandals that have tarnished the reputation of Nordic companies and focus on the sustainability components to adhere into GRC compliance.
We will further scan the current and the forthcoming regulatory compliance landscape for corporate ambition (appetite), process, implementation & develop a communication plan1
- What do we want to achieve
- How do we manage and integrate compliance activities across the Organisation
We will explore the possibilities to achieve compliance and assess the current deployment of regulatory compliance as a methodology to integrate the GRC framework. We will develop and Implement an Enterprise Compliance Management program with a roadmap, framework with an annual assessment program.
Picking up the pieces for stakeholders trust, profitability and survival
Nordic companies are overwhelmed by the scandals and debacles, as several corporations have squandered much of its reputational capital that gave been gained in recent years. Efforts are in action to regain the wounded reputation from their stakeholders for trust, profitability and survival.
The net effect of poorly managed reputational risk is that people do not want to do business with you. For companies to build up trust, they will have to focus on communication and GRC compliance consistency.
At the 9th annual European GRC Summit in Stockholm on the 22-23rd September at the World Trade Center Dr. Maria Cristina Ungureanu will address the changing nature of capital markets: Creating Long-Term Corporate Value in a Short-Term Equity Market
- Institutional Investors and Their Evolving Role in the Capital Markets
- New Players: Activist Investors and Hedge Funds
- Corporate communications with institutional investors
- Focus on Engagement in the Shareholder Rights Directive
Dr. Ungureanu's second keynote will address the Issue of Risk within Basel Committee's Revised Global Corporate Governance Principles for Banks
- Promoting a sound bank corporate culture through reinforcing the "tone at the top."
- Board oversight of Management and executive compensation
- Ensuring an appropriate Risk Governance framework through defined organizational responsibilities
Register today: http://www.copenhagencompliance.com/2015/stockholm/register.htm
