Anything that starts comes to an end. It is important to prepare for your exit. When you get appointed as a Board member for any company, time will come when you have to exit. Below are ways or red flags that your term could come to an end and when it does, how to exit honourably. 1.Term limits If your term has ended, it is time to let go. It is difficult to add something new if you overstay. Leave the Board when your term has come to an end. For example if you are called to serve two- three…
Risk Management in practice, a case study in Uganda
The management of risk is a multi-dimensional activity that entails a range of disciplines and thought processes to ensure that resilience is created and maintained within an organization. In any given organization, risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, time risk, human risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary. Risk management’s major purpose is to; Identify possible risks. Reduce or allocate risks Provide a rational basis for better decision making in regards to all risks Plan In responding to risks, one can choose to accept, mitigate…
Are you managing risk or risk is managing you?
Are you a Board member or Risk Manager or someone interested in good governance? This is to introduce you to Summit Risk, enterprise-wide risk management software that automates the risk management processes. The software has unique features that helps improve governance and compliance across the board. Summit Risk software helps streamline your enterprise risk management processes by empowering all staff to proactively identify, assess and manage risks on a continuous basis as part of their day-to-day operations. It helps overcome the challenges of having a printed risk register that is often outdated as it is not easy to up-date offline.…
Is your Board a window dressing?
In Uganda, we have a situation whereby people put in systems for the sake of it. To the outsiders, you think the system is working when actually it is not functional. As they say, the fish starts rotting from the head, when it comes to governance; it also starts rotting from the head. If the quality of the Board is not good, the organization will not succeed. Signs of window dressing Boards We have had situations whereby for a given business to access certain services, it has to project an image of being well governed. An image of good governance…
How to ensure Board member independence
For the Board to be effective, it needs to be independent from undue influence from many interested parties. These might be the staff, owners or even the shareholders. Before the Board is independent, it has to be independently appointed. We have had a challenge where the person who appoints the Board influences it in that he wants decisions to be taken in his favor. Things he does not want should be untaken by the company. We have seen influence peddling in government institutions. For example, if you look at National Social Security Fund (NSSF), the NSSF Act Cap 222 Laws…
Why you need risk management
A risk is uncertain event that has potential to cause harm or being an opportunity to the business. Management means to plan, control and make decisions. Why risk management? Risk management is to ensure that you anticipate potential events that could cause profits or a loss to the business, and to prevent unexpected bad events that could threaten success. The whole objective is to ensure that the business is a going concern. You don’t want to come to work and find the company has been closed because it has a lot of accumulated debts. It has not been paying staff…
