Corporate Governance and Risk Management Quiz

What is the purpose of corporate governance?

• To avoid government regulations

• To facilitate accountability and responsibility for efficient and effective performance, and ethical behaviour

• To minimize stakeholder confidence

• To maximize profits for shareholders

What are the main approaches to the enforcement of corporate governance standards?

• Comply or ignore

• Comply or explain

• Comply or challenge

• Comply or resist

Which organization is responsible for helping governments tackle economic, social, and governance challenges?

• World Bank

• United Nations

• Organization for Economic Cooperation and Development (OECD)

• International Monetary Fund

What is the focus of the London Stock Exchange (LSE) guidance on corporate governance?

• The effectiveness of the board

• The financial performance of companies

• The marketing strategies of companies

• The employee satisfaction of companies

What are the driving principles of corporate governance in government agencies?

• Avoiding stakeholder involvement

• Value for money and avoidance of inappropriate behaviour

• Maximizing profits

• Minimizing transparency

What are the Nolan principles of public life?

• Transparency, Responsibility, Communication

• Innovation, Leadership, Evaluation

• Objectivity, Openness, Honesty

• Profit, Integrity, Accountability

What is a critically important part of the corporate governance arrangements for any organization?

• Employee satisfaction

• Evaluation of board performance

• Marketing strategies

• Financial performance

What are the areas for evaluation of board performance?

• Innovation, Leadership, Evaluation, Communication

• Financial performance, Employee satisfaction, Marketing strategies, Risk management

• Transparency, Responsibility, Communication, Accountability

• Membership and structure, Purpose and intent, Involvement and accountability, Monitoring and review

What is a major part of ensuring adequate corporate governance for a financial institution?

• Adequate training and induction for board members

• Minimizing stakeholder involvement

• Maximizing profits

• Avoiding government regulations

What is the main motivation for ensuring good standards of risk management in a typical government agency?

• Minimizing transparency

• Avoiding stakeholder involvement

• Supporting the corporate governance arrangements in the agency

• Maximizing profits