1. GOOD GOVERNANCE, HUMAN & REGULATORY CAPITAL: MORE ACTION, LESS TALK
VALDA F HENRY, PhD, CFA
V F INC
37 CORK STREET, TOP FLOOR
ROSEAU, DOMINICA
TEL: / FAX:
WEBSITE:

2. OUTLINE OF PRESENTATION
FACTORS LEADING TO GREATER FOCUS ON GOOD GOVERNANCE
ELEMENTS OF GOOD GOVERNANCE
HUMAN AND REGULATORY CAPITAL DEFINED
LESSONS LEARNT FROM RECENT FINANCIAL EVENTS
TIME FOR ACTION

3. WHY THE FOCUS ON GOOD GOVERNANCE?
Financial Scandals –
Sarbanes-Oxley Act
Shareholders & Investor’s Activism
Media Scrutiny
Organisation’s Response

4. GOVERNANCE DEFINED
The process of decision making and the process by which decisions are implemented (or not implemented) (UNESCAP)

5. CHARACTERISTICS OF GOOD GOVERNANCE
Participatory
Consensus Building
Responsive
Effective & Efficient
Follows the Rule of Law
Accountable
Equitable & Inclusive
Transparent

6. IMPACT OF FOCUS ON GOOD GOVERNANCE
Greater focus by Regulators on Capital Adequacy and the emphasis on Basel definition of Core Tier 1 Capital – Shareholders’ Equity and Retained Earnings
Greater recognition and appreciation of human resources and emphasis on competencies rather than merely knowledge.
Human Capital refers to the stock of competencies, knowledge and personality attributes embodied in the ability to perform labour so as to produce economic value. It is the attributes gained by a worker through education and experience (Wikipedia)

7. REACTION & LESSONS LEARNT FROM FINANCIAL SCANDALS

8. TIME FOR ACTION: LESS TALKING
Recognise governance is about leadership. According to Chait et al (2005) boards are supposed to be the ultimate guardians of institutional ethos and organisational values. We need Board members with the right attributes especially courage and will to act (Bowen, 2008)
Understand that governance is more than systems and that the critical element for success is relationships. Charan (2005) speaks about the building blocks of boards: Group Dynamics, Information Architecture & Focus on Substantive Issues

9. THANK YOU