EU firms' senior managers can avoid the pitfalls of European company law requirements on risk management, internal control and audit by following a new best practice guide, say the Federation of European Risk Management Associations and European Confederation of Institutes of Internal Auditing...
The bodies have joined forces to produce the second instalment, aimed at senior managers, of their two-part practical guidance the EU 8th Company Law Directive.
Previously, the bodies say there was no advice published for senior managers and executive committees on practical approaches to supporting the board and audit committees in meeting their responsibilities under article 41-2b of the Directive: "Monitoring the effectiveness of internal control, internal audit and risk management systems."
"Today, it is crucial for organisations to think clearly about their internal assurance processes to avoid being subject to additional external regulation," said Carolyn Dittmeier, president of ECIIA.
Jorge Luzzi, president of FERMA, pictured, added: "Good governance depends on managers being conscious that good control reinforces management systems. With this Part 2 of the Guidance, ECIIA and FERMA aim to provide senior executives with practical guidance to be adapted to the culture, activities and organisation of their companies."
Based on experience, it takes senior executives through a series of questions that show how they can support the board in managing risks, and making best use of internal control and assurance from internal audit.
Part 1 of the guidance, for boards and audit committees, was released by FERMA and ECIIA in September.