Corporate Governance Principles Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Corporate Governance Principles flashcards as text
Which committee is primarily responsible for overseeing a bank's financial reporting and internal controls?
Answer: Audit Committee
The Audit Committee is responsible for overseeing financial reporting integrity, internal controls, and external auditor relationships.
Under the Basel Committee's corporate governance principles, the board of directors is responsible for:
Answer: Setting the bank's risk appetite and overseeing senior management
The Basel Committee assigns the board responsibility for setting risk appetite and providing effective oversight of senior management.
What is 'say-on-pay' in the context of bank corporate governance?
Answer: A shareholder vote on executive compensation packages
Say-on-pay gives shareholders an advisory or binding vote on executive compensation, enhancing board accountability.
A bank's whistleblower policy is best described as a governance mechanism that:
Answer: Provides channels for reporting misconduct without fear of retaliation
Effective whistleblower policies establish safe, confidential channels for reporting misconduct, a key element of a sound governance culture.
Which of the following best describes a 'staggered board' structure?
Answer: Only a fraction of board seats are up for election each year
A staggered board divides directors into classes elected in different years, providing continuity but potentially entrenching existing directors.
When a bank's external auditor is also providing significant consulting services, this raises a concern about:
Answer: Auditor independence and objectivity
Providing consulting services alongside audit work creates a financial dependency that can compromise the auditor's independence.
The principle of 'tone at the top' in bank governance refers to:
Answer: Senior leadership's demonstrated commitment to ethical standards and compliance
Tone at the top describes how senior leaders' behaviors and values shape the overall ethical culture and compliance environment of the institution.