BOARDS OF FINANCIAL INSTITUTIONS MUST MONITOR EXECUTIVE BEHAVIOUR TO AVOID PAST MISTAKES.

Board of directors of companies especially financial institutions must do more to ensure their executives stick to the ethical values espoused at board level to avoid the mistakes of the past. In a paper presented recently at the Hayne Royal Commission entitled “CEO’s say one thing and do another” the author Mr barry Rafe identifies flaw in board governance practices in large complex organizations.

Boards of directors must establish realistic values that can be practiced and monitored because executive teams tend to have different values which drive their daily and strategic activities. Mr Rafe, who is a former president of the Actuaries institute and an expert on governance said The Hayne Royal Commission which investigates misconduct at the most senior levels in the Australian financial service sector provided insights into justifications made for unethical decision taken which falls of standard expectations.

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