The new Corporate Governance Code: a fresh take on governance
The importance of good governance is timeless. What defines it, however, is not. Which is exactly the reason why the new Corporate Governance Code was introduced. A distinctive characteristic of the amended Code is the focus on the long-term creation of value, instead of a complete focus on financial performance alone. Merely conforming with the rules of the code is still not an end in itself. Its positive impact on your organization that what it is about.
BDO identifies three key changes:
- Risks must be managed in a systematic way to keep creating long-term value. Directors and auditors must take responsibility and report all material risks. Both internally and externally, and no longer limited to just financial reporting risks. It should be made explicit what impact those risks have on the continuity of the company.
- The internal audit function gets a more important role. Commissioners get more closely involved in the appointment, evaluation and dismissal of the internal auditor.
- The code names organizational culture as an explicit part of good governance. That means that directors and auditors are responsible for shaping a healthy culture that contributes to long-term continuity objectives.
Are you wondering as a director or commissioner what specific changes this Code brings and what these latest amendments mean for your organization? Would you like to know the current status of your organization and what is needed to comply with the new Code? On this page you will find all the information about the new Corporate Governance Code, both textually and visually.
New code: vision of BDO
Watch the video in which John Hijmans, partner of Risk Advisory Services, presents it vision on the new code on behalf of BDO.
BDO summed up the main changes of the new code and clarified its impact for your organization.
For the three themes culture, internal audit and risk management, which are reinforced in the new code by the Monitoring Committee, BDO has developed his vision. Besides the main changes, the documents below reveal more information about the possibilities to give meaning to these subjects.
BDO can help you identify where your organization currently stands and what is needed to comply with the new code. Wondering how we do this? Get in contact with John Hijmans, Partner Risk Advisory Services for a free and informal appointment.