1. Sport Governance Conference In Partnership with the Legal Panel Framework Cynhadledd Llywodraethu Chwaraeon Mewn Partneriaeth â’r Fframwaith Panel Cyfreithiol PRINCIPLES OF GOOD GOVERNANCE WORKSHOP GWEITHDAI EGWYDDORION LLYWODRAETHU DA Standards, Systems and Controls Safonau, Systemau a Mesurau Rheoli Sarah Hillary and Robert Noye-Allen (Moore Stephens)

2. PRECISE. PROVEN. PERFORMANCE. © 2011 Moore Stephens LLP Sport Wales Sport Governance Conference 28 October 2013 www.moorestephens.co.uk Principle 5: Standards, systems and controls

3. PRECISE. PROVEN. PERFORMANCE. © 2011 Moore Stephens LLP www.moorestephens.co.uk Welcome

4. Workshop: Standards, systems and controls Agenda Introduction and your expectations Context and definitions Systems and controls Risk management

5. Your expectations

6. Objectives 1.To be able to practically apply the expectations of Principle 5 of the Voluntary Code of Good Governance in your organisation. 2.To encourage sharing of good practice and develop understanding of regulatory and legal responsibilities, the need for financial controls and appropriate delegation through committee structures and also to the executive.

7. Definitions Governance relationships rights and responsibilities Systems and controls monitoring accountability

8. Voluntary code of good governance for the sport and recreation sector Fifth principle: Standards, systems and controls The Board needs to be conscious of the standards it should operate to, and its role in exercising appropriate and effective control over the organisation

9. PRECISE. PROVEN. PERFORMANCE. © 2011 Moore Stephens LLP Principle 5 Part Two: Systems and Controls www.moorestephens.co.uk

10. Systems and controls Roles and responsibilities Effective delegation of authority Financial control Legal and regulatory obligations

11. Roles and responsibilities What are the Board’s responsibilities for systems and controls? What are management’s responsibilities? Are these defined within your organisation?

12. Effective delegation Is authority defined in your organisation? Is there a delegated framework? Is this purely financial? How does it link to the decision making process?

13. Key financial controls What are your key financial controls? What challenges do you face in designing and implementing controls? How do you know the controls are effective? What assurances should the board be getting? Who should provide assurance to the board?

14. Legal and regulatory obligations What are your legal and regulatory obligations? How are you informed of your obligations? How do you keep up to date with your responsibilities in this area?

15. PRECISE. PROVEN. PERFORMANCE. © 2011 Moore Stephens LLP Principle 5 Part Three: Risk Management www.moorestephens.co.uk

16. Risk Risk management – why and what? Risk management within the sport sector What does it mean in practice?

17. What is risk? The uncertainty surrounding events and their outcomes that may have a significant effect, either enhancing or inhibiting; operational performance achievement of aims and objectives meeting expectations of stakeholders

18. Risk management Central part of an organisations strategic management. Process to methodically identify and assess risks attached to activities and objectives, and to determine appropriate controls to treat risks.

19. An approach to risk management Identify All the risks Assess those risks Record in risk register Identify risk appetite Measure risks Are they mitigated / controlled? Extra / reduce controls? Control Business as usual but report Report on risk Controls operating? Changes in assessment IdentifyAssessMeasureControlReport © 2012 Moore Stephens LLP 19

20. Benefits Avoid bureaucracy More efficient processes Less firefighting Fewer surprises More efficient and effective utilisation of resource

21. Fundamentals of good risk management Clear objectives Risk aware culture Continuous review of actions Regular, clear reporting

22. In the room What risk management systems do you operate? Who is involved? What is the board’s role? How well established is risk management in your organisation? Are you getting any value from your risk management system?

23. Many risk management programmes are a waste of time They must beThey must not be Relevant to risk takers Part of strategic planning A board priority Driven from the top Embedded in the business A tick box exercise Lip service “Flavour of the month” Get it right and it becomes a contributor to competitive advantage © 2012 Moore Stephens LLP 23

24. Risk discussion What keeps you awake at night?

25. Risk summary Risk management is the discipline of: Identifying and assessing all the risks you are exposed to Setting risk appetite for those risks aligned to strategic objectives Deploying the resources needed to control and monitor the risks; and Reporting and re-assessing those risks in a documented and evidenced framework © 2012 Moore Stephens LLP 25

26. Questions or comments?