Corporate governance assessment and policy development for a local bank

Corporate governance assessment and policy development for a local bankBank Standard JSC, one of leading local banks, wanted to assess its corporate governance practices in accordance with good practices and local requirements which were set by the Central Bank and Ministry of Economy. Based on this assessment, its current corporate governance policy would be subject to renewal or update after close consultation with relevant bank stakeholders. A Corporate Governance Assessment is an effective way to communicate your company's compliance and integrity to investors, creditors, regulators, business partners, insurers and other stakeholders. An assessment by an independent party can help manage investor expectations and signal your commitment to sound corporate governance. This can in turn reduce your cost of capital and support your share price, as it enables well-governed companies to capitalise on the premium investors are willing to pay for good governance.

Key project information

  • Country:

    Azerbaijan

  • Financing/Donor:

    Bank Standard JSC

  • Client/Project Beneficiary:

    Bank Standard JSC

  • Project Size:

    Small (<$50k)

  • Contractor type:

    Solo contractor

  • Contract period:

    January 2014 - May 2014

Assignments delivered by Prima

  • Corporate governance assessment and roadmap. The governance system and control environment of a bank must be reviewed, especially in the context of organisational change. We analysed the company’s practices taking into account its strategic aspirations, benchmarked them against peer practices, and developed detailed recommendations followed by 2-year roadmap. In the roadmap, the regulatory requirements and supervisory expectations were specifically reflected. Our assessment included the company's risk profile in seven areas: 1) Governance policy and business ethics, 2) Risk management processes, 3) Ownership structure and control, 4) Reporting, audit, and verification, 5) Board structure and management, 6) Board and executive compensation and 7) Investor rights and relations.
  • Updated policy. Based on the assessment, current corporate governance policy was modified. Before the issuance, new version was discussed with key bank stakeholders and staff in workshops and round-tables and comments were incorporate accordingly.

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