The importance for the board of directors to have all the information

The importance for the board of directors to have all the information relating to key operational internal controls and risks

1. In the first instance, the information provided enables the board to monitor the performance of the company on the crucial issues. This includes compliance, performance against targets and the effectiveness of existing controls. By being made aware of the key risks and internal control issues at the operational level, the board can work to address them in the most appropriate way.


2. The board also needs to be aware of the business impact of operational controls and risks to enable the board to make informed business decisions at the strategic level. If the board is receiving incomplete, defective or partial information then they will not be in full possession of the necessary facts to allocate resources in the most effective and efficient way possible.


3. The board has the responsibility to provide information about risks and internal controls to external audiences. Best practice reporting means that directors have to provide information to shareholders and others, about the company’s systems, controls, targets, levels of compliance and improvement measures and hence quality information are needed to achieve this.




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