Brief Outline/ Introduction

In today's rapidly changing regulatory environment, it is more crucial than ever to set a strong tone at the top. Organizations depend on the judgment of audit committee members to oversee important areas such as risk management, compliance, financial reporting, and corporate resources. The expectations and responsibilities of audit and risk committees are continuously evolving in response to governance developments, which require Boards and governing bodies to demonstrate adherence to relevant auditing, assurance, and risk management standards. Therefore, audit committee members need to stay informed and aware of any changes to their responsibilities.

This training program for the Board Audit and Risk Committee focuses on best practices that committees can adopt to effectively fulfill their responsibilities and enhance their strategic contributions and performance. Participants will learn about innovative frameworks that align corporate strategy with risk management and financial reporting, ultimately improving performance in today's highly disruptive environment.

Program Objectives

• Comprehend the role and responsibilities of the Audit and Risk Committees in today’s board.
• Align audit and risk functions with corporate strategy.
• Explore legal, regulatory and compliance requirements relevant to audit and risk functions.
• Obtain sufficient knowledge to enable board members to ask the right questions.

Expected Output

• Improved Governance: Ensure that board members understand their responsibilities in overseeing financial and risk management processes. 
• Risk Mitigation: Assist board members in effectively identifying and managing risks to protect the organization from potential threats. 
• Regulatory Compliance: Ensure that the board adheres to legal and regulatory requirements, which helps reduce the risk of penalties. 
• Enhanced Decision-Making: Improve the board’s ability to make informed decisions by providing a clear understanding of the organization’s risk profile.

Target Delegates

• Board Members: Especially those sitting on audit and risk committees, or those who have oversight of governance and compliance.
• Senior Executives: Including CFOs, Chief Risk Officers (CROs), internal auditors, and compliance officers.
• Governance Professionals: Individuals involved in corporate governance or regulatory compliance.

Planned Program

Day 1

Introduction to the Role of the Audit and Risk Committees

• Purpose of Audit and Risk Committees: Understanding the roles and responsibilities of both committees within the governance framework.
• • Audit Committee: Overseeing financial reporting, internal controls, and the external audit process.
  • Risk Committee: Identifying, assessing, and managing risks to ensure the organization is resilient to potential threats.
  • Key Governance Principles: Overview of corporate governance best practices and standards that guide audit and risk committees, including frameworks like COSO (Committee of Sponsoring Organizations) and ISO 31000.

Legal and Regulatory Framework

• Laws and Regulations: Understanding the legal environment in which audit and risk committees operate. This includes regulations such as the Sarbanes-Oxley Act, IFRS (International Financial Reporting Standards), SOX Compliance, and GDPR.
• Board Fiduciary Duties: The responsibilities and duties of board members, including duty of care, duty of loyalty, and duty of obedience.
• Ethical and Legal Risks: Identifying potential legal and ethical risks associated with oversight failures, negligence, or fraud.

Day 2

Audit Committee Responsibilities

• Financial Reporting Oversight: Ensuring that financial statements are accurate, reliable, and comply with relevant accounting standards.
• • Understanding GAAP (Generally Accepted Accounting Principles) and IFRS.
  • Monitoring the external audit process and relationships with auditors.
• Internal Controls and Governance: Reviewing the effectiveness of internal control systems to prevent fraud, error, and mismanagement.
• • Evaluating internal audit functions and ensuring independence.
  • Assessing risk management processes for financial reporting.
• Audit and Financial Statements: Ensuring the integrity of the organization’s financial reports and disclosures, and reviewing quarterly and annual reports.
• Dealing with Audit Findings: Addressing audit recommendations, audit adjustments, and dealing with management’s response to audit reports.

Risk Committee Responsibilities

• Enterprise Risk Management (ERM): Establishing and overseeing the organization’s ERM framework, including the identification, assessment, and mitigation of key risks (strategic, financial, operational, reputational, and compliance risks).
• • Understanding how to assess risks in a structured manner (risk matrices, risk registers, etc.).
  • Setting risk tolerance and risk appetite levels for the organization.
• Risk Oversight Framework: Identifying key risks that could impact the organization and ensuring appropriate risk management strategies are in place.
• Crisis Management and Business Continuity: Ensuring the board is prepared for crises, including understanding business continuity plans, disaster recovery, and crisis response strategies.
• Cybersecurity and Technology Risks: Evaluating risks related to information technology, data privacy, and cybersecurity, especially in an increasingly digital business environment.
• Risk Reporting: Ensuring the organization regularly reports on key risks to the board and stakeholders.

Board-Level Risk and Audit Reporting

• Reporting to the Board: How audit and risk committees should communicate their findings, recommendations, and risk profiles to the broader board.
• • Understanding the audit report structure, including risk assessments, audit findings, and actionable recommendations.
  • Creating risk dashboards and key risk indicators (KRIs) to help board members easily track and understand risk levels.
• Board’s Role in Decision-Making: Helping the board integrate audit and risk management findings into strategic decision-making processes.

Day 3

Effective Risk Governance and Culture

• Risk Culture: How to promote a risk-aware culture at all levels of the organization, from the boardroom to front-line staff.
• Risk Appetite and Risk Tolerance: Defining and aligning the organization's risk appetite with its strategic objectives.
• Ethics and Integrity: Promoting ethical behavior, integrity, and transparency in both financial and risk management processes.

Audit and Risk Committee Collaboration

• Coordination Between Audit and Risk Committees: Understanding how audit and risk committees work together, including managing overlaps and ensuring efficient division of responsibilities.
• External Relationships: Engaging with external auditors, regulators, and other stakeholders to fulfill responsibilities effectively.
• Cross-Committee Communication: How audit and risk committees should communicate with other board committees, such as the nomination or compensation committees, for integrated risk management.

Managing Specific Risks

• Strategic Risks: Identifying risks that could impact the company’s strategic goals, including market shifts, mergers, acquisitions, and competitor threats.
• Financial Risks: Managing risks related to financial performance, capital structure, investment, and liquidity.
• Operational Risks: Assessing risks that impact day-to-day operations, including supply chain risks, talent management, and regulatory compliance.
• Reputational Risks: Managing risks related to brand image, public perception, social responsibility, and media exposure.
• Emerging Risks: Identifying and managing emerging risks, such as those related to climate change, geopolitics, cyber threats, and technological disruptions.

Case Studies and Practical Applications

• Case Studies of Successful Risk Management: Learning from examples of organizations that effectively managed risks or handled crises well.
• Lessons from Failures: Understanding the lessons from organizations that suffered due to weak risk oversight, such as financial mismanagement, fraud, or reputation damage.
• Role-Playing and Scenario Analysis: Simulating real-life situations where audit and risk committees must make decisions about risk and audit issues.

Board Evaluation and Continuous Improvement

• Performance Evaluation: How to evaluate the effectiveness of the audit and risk committees’ performance.
• Ongoing Training: The importance of continuous professional development to keep up with regulatory changes, emerging risks, and new auditing practices.
• Feedback Mechanisms: Creating systems for collecting feedback from stakeholders to improve the committees' effectiveness over time.

Training Approach

This training is delivered by our experienced trainers who are experts in their respective fields. The instruction includes a combination of practical activities, presentations, group work, and case studies. Participants will also receive training notes and additional reference materials.