Risk Management and Internal Controls Study Report - Roles, Responsibilities & Liabilities of Independent Directors
Study findings emphasize the need for Companies to strengthen Internal Control Safeguards to prevent Corporate Frauds
Confederation of Indian Industries (CII) and Protiviti Member Firm for India, in association with National Foundation for Corporate Governance (NFCG) has come out with a detailed study emphasizing the need for companies to strengthen Internal Control safeguards to prevent Corporate Frauds. The study, conducted on Independent Directors (IDs) brings to fore an in-depth perspective on questions relating to the adequacy of internal controls and governance frameworks in companies and highlights the challenges faced by IDs in recent years towards confidently discharging their duties with respect to internal controls amidst an upsurge of corporate and accounting frauds.
The study was an engaging exercise with one-on-one in-depth interviews with over 100 Independent Directors participating from companies across industries, including multinational corporations, Indian conglomerates, and other businesses. Annual reports of 150 companies were examined for two consecutive financial years, focusing on types and instances of disclosure around IFC by the directors and the auditors.
The role of IDs is becoming increasingly crucial as they guide the management on best practices and fair standards that can be imbibed by organizations. However, performing these duties comes with their own set of impediments for IDs and they need support of the Management to overcome them.
Download the full report for a detailed overview of the report findings, which delivers some key insights, applicable on spectrum of companies across industries.