CorporateMOM
Corporate Management Orbiter Mission.
Podcast Episode #73 CREAM Report R Risk Management & Internal Controls – M&M Analytics
mp3Audio : Risk Management and IC.mp3
Video: https://youtu.be/5YC-MQa6znU
pdf for Download:
Podcast Episode #73 CREAM Report R Risk Management & Internal Controls – M&M Analytics : Risk Management and IC
Measuring Corporate Governance
Measuring Corporate Governance
The biggest of all the risks is the lack of Accountability.
CREAM Report R Risk Management & Internal Controls – M&M Analytics – 5 criteria
In continuation of my mission to establish ICGI – The Institute of Corporate Governance of India [As a Statutory Body under an Act of Parliament] I am presenting here the third part of the series CREAM Report – R Risk Management & Internal Controls – M&M Analytics.
Under Risk Management I present 5 criteria as set by M&M and under Internal Controls – COSO Framework.
We took upon Management Quality – The Board of Directors – Committees – SEBI – LODR 17-27 and Vigil Mechanism #22 of SEBI with M&M CoC implanted. These are governance rules and regulations set by SEBI and others.
Now with Risk Management under purview we are examining the quality set forth by companies. In this case study, it is from M&M. The biggest of all the risks is the lack of Accountability. So it is the Guidance Note companies must look at, to create a qualitative management operating system for setting standards under a variety of criteria as applicable to each company. Corporate Governance follows how the set standards are acted upon by EPP – Effort per Person so that Accountability factor is ensured. I have taken note of 5 such criteria set by M&M.
1. The Ratings System
The 5 criteria analyzed are:
1. Water Security. The proposed system provides detailed data insights into individual and team performance, which could be valuable for company reporting, accountability, and optimizing employee productivity.
2. Carbon Emissions – The importance of setting clear targets with specific dates (e.g., carbon neutral by 2040) and tracking progress using CAGR and CARR (Compound Annual Reduction Rate) is highlighted.
3. Product Stewardship – clean automotive products, product improvement roadmaps, and new initiatives.
Three Risk areas are analyzed: 1. The importance of integrating economic, social, and environmental goals, 2. The status of R&D in the Six stages of Transformation and 3. Intangible Assets as to why it is a big financial risk as is now for India.
4. Health & Safety – The system aims with ISO 45001 to include: leadership commitment, worker participation, legal and regulatory compliance, incident investigation, and continual improvement, providing a healthy and safe working environment for their employees and visitors.
5. Sustainable Supply Chain – is proposed in a risk management system measured for Index of Inactivity by Process Areas [24 Process Blocks] and Index of Inactivity by Resource Areas of selected Suppliers with Suppliers rated on a 5-point scale for performance.
The 5 criteria are summarized as to the matrix by resource area and process area for 34 process blocks totally.
COSO Framework: Same as to Internal Controls of 5 process blocks is presented.
Essence of Economics lies in risk taking as the saying goes, go ahead take the risks, standardizing the corporate critical density benchmarks.
Regards,
Jayaraman
Follow me on LinkedIn:
https://www.linkedin.com/mynetwork/discovery-see-all/?usecase=PEOPLE_FOLLOWS&followMember=jayaraman-iyer-6027b71
Subscribe to my Podcasts:
Apple Channel https://apple.co/36HUfzH
Apple Connect: https://podcasts.apple.com/us/podcast/cream-technology/id1574092368
Spotify: https://spoti.fi/3qzEAM1
Stitcher: https://lnkd.in/eAUS9-E
Google Play: https://bit.ly/3vZ6ulT
Reason: https://reason.fm/podcast/cream-ratings
