Corporate governance key to achieving goals.MANAMA: Corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. is of utmost importance in the supervision and regulation of all financial institutions. The Central Bank of Bahrain The Central Bank of Bahrain was established in 1973 as the Bahrain Monetary Agency, shortly after Bahrain gained its independence from the United Kingdom. As per Decree No. (CBB CBB Celebrity Big Brother CBB College van Beroep voor het Bedrijfsleven (Dutch) CBB Cattlemen's Beef Board CBB Coalition for Buzzards Bay CBB Could Be Better (visual effects) CBB Can't Be Bothered ) encourages all licensees and listed companies listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → to implement a sound corporate governance environment, CBB executive director of financial institutions and supervision Abdul Rahman Al Baker said yesterday. He was speaking at the General Arab Insurance Federation and Bahrain Insurance Association seminar on Corporate Governance & Enterprise Risk Management, Current Challenges & The Financial Crisis, at the Golden Tulip Hotel yesterday. "Corporate governance involves a set of relationships between a company's management, its board, the shareholders and other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ," he said. "It provides the structure through which the objectives of the company are set and the means of attaining those objectives and monitoring performance are determined. "Corporate governance issues have been raised in the regulation of all financial institutions and while there are common themes for all financial institutions, there are also some significant areas that need to be addressed when it comes to the insurance sector. "Basically, good corporate governance in the insurance sector should have as a primary emphasis maintaining the fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. obligations
for each company's stakeholders. More specifically, it requires
balancing the needs of policyholders, employees and other business
partners.
"Furthermore within the insurance sector, corporate governance issues have some distinguishing features, between conventional insurers and takaful | Takaful is an Islamic insurance concept which is grounded in Islamic muamalat (banking transactions), observing the rules and regulations of Islamic law. firms." "Numerous studies on the case of good corporate governance have been published," he said. "One common theme from these studies is that good corporate governance can lead to improve company's profitability, reduce the cost of capital and enhance its valuation. These are all features that every financial institution strives for and these are some of the reasons why corporate governance should be given priority. "As the regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities for all financial institutions in Bahrain, the CBB has put in place a structured framework for corporate governance outlining its key requirements in its rulebook," he added. "These requirements are in line with the best international standards as established by the International Association of Insurance Supervisors. "The CBB believes in promoting good corporate governance for its licensees as well as good risk management practices," he said. "Enterprise risk management is gaining prominence within the financial sector industry as one of the other cornerstones of a sound financial system," he added. Copyright 2009 Gulf Daily News Provided by Syndigate.info an Albawaba.com company |
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