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Group of Thirty report - The role of management - EY - Global

Group of Thirty report

The role of management

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There must be a set of management protocols for governing and controlling operations in huge and complex organizations that assures clear management accountability.

Management plays a crucial role in bank governance, upward to the board and down through the organization.

The role and obligations of management in effective governance tend to be overlooked. Yet, the vast majority of governance and control processes are embedded in the organizational fabric, which is woven and maintained by management.

Management must deepen its respect for the vital roles of the board and supervisors and help them to do their jobs well. It must reinforce the values that drive good behavior through the organization and build a culture that respects risk while encouraging innovation.

For management to play its governance role effectively, the G30 recommends the following actions:

  1. Be accountable for the daily effectiveness of the control framework.
  2. Ensure control professionals maintain a comprehensive view of the firm’s risks, balancing prudence with encouragement of a sustainable risk appetite.
  3. Educate and inform directors on an ongoing basis.
  4. Focus the governance dialogue on the key issues and bring the board early into management’s thinking on key decisions.
  5. Expose directors to a broad set of executives and employees so they get an unfiltered view of the company.
  6. Work continually on modeling and supporting a culture that promotes long-term thinking, discipline and accountability.
  7. Encourage a culture of no surprises, the quick elevation of issues, toleration of mistakes, organizational learning and punishment of malfeasance.
  8. Build a trust-based environment that supports critical challenges and is open to change.






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