International Framework for Liquidity Risk Measurement,Standards and Monitoring:Corporate Governance and Internal Controls

摘要

This paper is structured in accordance with identified components which are considered to beudessential to the successful implementation of the (two fold) topics of discussion of this paper,udnamely, monitoring and liquidity risk measurements. The importance of successfullyudcommunicating results obtained from monitoring and measuring such risks, and the role ofudcorporate governance in ensuring such effective communication, constitutes a recurring themeudthroughout this paper. The identified components are as follows: i) Corporate governance (ii)udInternal controls (iii) Disclosure (iv) Management of risk (v) Substance over form (vi)udTransparencyudAs well as highlighting the interdependence of these components, the paper also aims to accentuateudthe importance of individual components. Whilst no hierarchy of importance is assigned to theseudcomponents, corporate governance and internal controls are two components which are analysedudin greater depth (than other components). Furthermore, corporate governance could be accorded audstatus of greater importance than internal controls having regard to the fact that whilst internaludcontrols relate to a very vital control aspect of an organisation, corporate governance relates to alludprocesses – be it decision making, control, production, performance, within a company/bank.udThe paper will also attempt to demonstrate that it is possible to implement a system of regulationudwhich combines increased formalised procedures and/or detailed rules - whilst giving dueudconsideration to the substance of transactions