CII launched a study report in association with the Protiviti and National Foundation for Corporate Governance (NFCG) on - 'Risk Management & Internal Controls - Roles, Responsibilities & Liabilities of Independent Directors’.
The study is an outcome of intensive one-on-one discussions with over 100 Independent Directors (ID) and Key Managerial Person (KMP) as well as an examination of over 150 annual reports of companies for two consecutive years.
Some of the key themes covered in the report include:
1. Adequacy of internal controls and governance frameworks in companies
2. 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
Key findings from the report:
1. 89% IDs believe that the health of Internal Controls is not as robust as reported in the annual reports
2. 81% IDs believe that there are insufficient legal safeguards from unfair prosecution and reputational damage
3. 70% IDs believe that recent legal action has been extreme
4. 60% IDs do not have adequate resources to confirm the health of internal controls