Explain FIVE (5) objectives of King IV 1.2 Discuss how King IV addresses the following issues: a).
Fantastic news! We've Found the answer you've been seeking!
Question:
Explain FIVE (5) objectives of King IV
1.2 Discuss how King IV addresses the following issues:
a). Ethical leadership
b). The remuneration policy of a company
c). Relationships with shareholders and other stakeholders
1.3 Principle 11 of King IV states: The governing body should govern risk in a way that supports the organisation in setting and achieving its strategic objectives. Research Principle 11 and state the four (4) recommended practices by this principle.
Transcribed Image Text:
Comair's suspension show the need for boards to manage risk proactively Thursday, 17 March 2022 Last week's suspension of Comair's licence to fly because of safety concerns is clearly a crisis for any airline. While the Civil Aviation Authority announced today lifted the suspension, the incident serves as a reminder of the imperative for boards to identify and manage key risks proactively, says Parmi Natesan, CEO of the Institute of Directors in South Africa. "In King IV, the governance of risk is one of the 16 Principles that underpin a successful and sustainable organisation and is thus a keyboard responsibility. Boards have to identify what the organisation's key strategic risks are within the context of the industry in which it operates," she says. "Clearly, an airline needs to be able to fly, so anything that could prevent it from doing so has to be proactively managed. Such risks would include natural disasters, damage to the fleet, loss of talent and more-including the temporary loss of a licence to operate, as we saw with Comair." Boards thus need to ensure that such risks are on the organisation's risk register and that they are being actively managed. For any airline, safety would generally be one of the top risks because it potentially affects not only the company's ability to earn revenue but also human life. The board has to be hyper-vigilant about such a risk, and a key mitigation strategy would be to ensure compliance with all applicable laws and regulations, coupled with a welldesigned set of internal checks and indicators so that the board can be informed timeously that safety risk is not being effectively managed. "This type of risk doesn't materialise out of thin air-it's foreseeable. Safety is very much top of mind for airlines because the consequences of an accident are so dire, and the board has to be in a position to monitor how well it is being managed," says Ms Natesan. "If, despite this, the risk happens to materialise, boards must also have a crisis communication plan in place to manage public perception and reduce the inevitable reputational damage." Comair's suspension show the need for boards to manage risk proactively Thursday, 17 March 2022 Last week's suspension of Comair's licence to fly because of safety concerns is clearly a crisis for any airline. While the Civil Aviation Authority announced today lifted the suspension, the incident serves as a reminder of the imperative for boards to identify and manage key risks proactively, says Parmi Natesan, CEO of the Institute of Directors in South Africa. "In King IV, the governance of risk is one of the 16 Principles that underpin a successful and sustainable organisation and is thus a keyboard responsibility. Boards have to identify what the organisation's key strategic risks are within the context of the industry in which it operates," she says. "Clearly, an airline needs to be able to fly, so anything that could prevent it from doing so has to be proactively managed. Such risks would include natural disasters, damage to the fleet, loss of talent and more-including the temporary loss of a licence to operate, as we saw with Comair." Boards thus need to ensure that such risks are on the organisation's risk register and that they are being actively managed. For any airline, safety would generally be one of the top risks because it potentially affects not only the company's ability to earn revenue but also human life. The board has to be hyper-vigilant about such a risk, and a key mitigation strategy would be to ensure compliance with all applicable laws and regulations, coupled with a welldesigned set of internal checks and indicators so that the board can be informed timeously that safety risk is not being effectively managed. "This type of risk doesn't materialise out of thin air-it's foreseeable. Safety is very much top of mind for airlines because the consequences of an accident are so dire, and the board has to be in a position to monitor how well it is being managed," says Ms Natesan. "If, despite this, the risk happens to materialise, boards must also have a crisis communication plan in place to manage public perception and reduce the inevitable reputational damage."
Expert Answer:
Answer rating: 100% (QA)
1 Objectives of King IV King IV is a corporate governance code in South Africa that provides principles and recommended practices to guide organizations in achieving ethical and effective governance I... View the full answer
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
Posted Date:
Students also viewed these accounting questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
How many of the following could be valid JDBC URL formats for an imaginary driver named magic and a database named box? A. Only first B. Only second C. Only third D. first and second E. first and...
-
Ogden Corporation uses a job order costing system in its manufacturing operation. For the year 2011, Ogdens predetermined overhead rate was 75% of direct labor costs. For September 2012, the company...
-
HB makes and sells a single product. The company operates a standard marginal costing system and a just-in-time purchasing and production system. No inventory of raw materials or finished goods is...
-
Entropy is a measure of the (a) Randomness of a system (b) Orderly configuration of molecules (c) Non-randomness of a system (d) None of these.
-
Dominic Hunter, a second-year business student at the University of Utah, will graduate in two years with an accounting major and a Spanish minor. Hunter is trying to decide where to work this...
-
Evaluate non-monetary benefits that open trade has contributed to the world since the end of World War II. Provide at least 2 examples of the above benefits and explain why you believe each is...
-
Capital Structure Project - W. M. Wrigley Jr.(10pts * 6 = 60 pts) For this project, please use Excel to do your calculations and analysis and then type a report in MS Word. Your report should clearly...
-
Problem 1 Consider the device intended to measure the speed of a hockey puck. It consists of a glove" attached to a rod that can slide through a bushing. A spring resists the motion resulting from...
-
What are the key characteristics of a model that makes it easily testable?
-
What are the two categories of pattern generality? Explain.
-
What problems arise if analysis patterns are used through analogy? Explain.
-
What is the concept behind constructing analysis pattern using analogy approach?
-
How is applicability of a pattern related to pattern reusability?
-
Review Exhibit 11.4. Analyze each product on the graph according to the characteristics that influence the rate of adoption. For example, what can you conclude from the data about the relative...
-
A firm has three investment alternatives. Payoffs are in thousands of dollars. a. Using the expected value approach, which decision is preferred? b. For the lottery having a payoff of $100,000 with...
-
The availability of venture capital provided a big boost in funds available to companies in recent years. According to Venture Economics (Investors Business Daily, April 28, 2000), 2374 venture...
-
The Bridgeport city manager and the chief of police agreed on the size of the police force necessary for normal daily operations. However, they need assistance in determining the number of additional...
-
What is a heat engine? Calculate its thermal efficiency.
-
What are the differences between a heat pump and a refrigerator?
-
Calculate the change in entropy when 5 moles of an ideal gas expands from a volume of \(5 \mathrm{~L}\) to \(50 \mathrm{~L}\) at \(27^{\circ} \mathrm{C}\).
Study smarter with the SolutionInn App