He added that it sets the tone on how the organisation operates and behaves both internally and to the market generally.
Dr. Musa made these remarks on Monday at Paradise Suites Hotel during the opening of the regional course on corporate governance and regulatory compliance organised by WAIFEM.
He pointed out that the course could not have come at a better time than now when most countries and institutions are grappling with governance and regulatory issues.
The week-long course is designed to provide participants with the knowledge necessary to effectively design and enhance integrated good governance and regulatory compliance activities across organisations.
The course aims to build ethical culture and establish acceptable corporate governance standards and mitigation of compliance risks in organisations. It is also expected to empower leaders in both public and private organisations and compliance managers in addressing the pervasive corporate governance failures and regulatory compliance issues. Participants are also expected to develop core operational skills that focus on the best fit practices in risk management, create regulatory compliance culture, and strengthen relationships with key stakeholders.
Dr. Paul Mendy, deputy governor No2 at the Central Bank of The Gambia, in deputising for the governor of Central Bank of The Gambia, said WAIFEM under Dr. Baba Yusuf Musa has been unrelenting in contributing immensely to the building of capacity in macroeconomic, debt and financial sector management, as well as governance and institutional development across the sub-region.
Dr. Mendy highlighted that one of the most obvious reasons for corporate failure is the lack of an effective board, adding that clear skills limitations, an absence of experience in core business areas and the inability of non-executive directors to hold senior executives to account have repeatedly paved the way for collapse.
He further stated that another crucial corporate governance issue that makes organisations and companies fail is risk blindness, noting that poor business culture in any institution or company is another major culprit in terms of corporate governance failure.
“Companies that place a hyper-intensive focus on driving profits often foster cultures of double standards,” he observed, saying technological innovation has not only been fantastic in advancing industry and simplifying supply chains but has also posed huge challenges for executives.
According to him, good corporate governance involves a framework that is put in place to get the most value for shareholders legally, ethically, and sustainably.
He also said that the first step to regulatory compliance starts with a comprehensive audit to determine a compliance baseline, compliance processes, policies, and user access controls and identify where any problem areas lie.
The course is designed to cover topics such as the value proposition, risk management and regulatory compliance, historical evolution of regulatory framework for corporate governance, redflags associated with regulatory compliance and governance failures, the OECD principles of corporate governance, development and implementation of good corporate governance practices, COSO framework for risk management, framework for compliance risk assessment, framework for anti-bribery and corruption policy, financial crimes and issues in compliance risk management, corporate governance framework for public agencies, banks and other financial institutions, identifying high risk areas and compliance issues in organisations using risk management, governance framework for whistle-blowing policy, complaint handling policy and corporate governance strategy, and building a culture of compliance and good corporate conduct among others.
WAIFEM was established by the Central Banks of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone in 1996, principally to build capacity for improved macroeconomic, financial sector and debt management as well as governance and institutional development in the constituent member countries. The institution also has the mandate to conduct research and provide consultancy in the areas of macroeconomic policy management and promotion of best practices.
