The Common Assessment Framework (CAF) is a total quality management tool inspired by the Excellence Model of the European Foundation for Quality Management (EFQM) and the model of the German University of Administrative Sciences in Speyer.
It is based on the premise that excellent results in organisational performance, citizens/customers, people, and society are achieved through leadership driving strategy and planning, people, partnerships, resources, and processes. It simultaneously looks at the organisation from different angles, taking a holistic approach to organisational performance analysis.
Cadbury committee | 1992, London Stock Exchange, en • nl
This report is a milestone in corporate governance. It is 1992. The Cadbury Report about “Financial Aspects of Corporate Governance” has been published. This groundbreaking report – chaired by Sir Adrian Cadbury – led to improvements in governance standards. It was a reaction to the Bank of Credit and Commerce International scandal in 1991.
• Dit rapport is een mijlpaal in het corporate besturing. Het is 1992. Het Cadbury Report over “Financial Aspects of Corporate Governance” wordt gepubliceerd. Baanbrekend – voorgezeten door Sir Adrian Cadbury – en het leidde tot verbeteringen in de normen voor deugdelijk bestuur. Het was een reactie op het schandaal in 1991 bij de Bank of Credit and Commerce International.
The report made specific recommendations on good corporate governance, which it described as ”best practice” or ”code of conduct.”It was highly influential in developing organisational codes regarding external shareholders’ accountability. It is the start of a new line of thinking about good governance, also in the public context. • Het rapport deed specifieke aanbevelingen voor goed ondernemingsbestuur, die het omschreef als “best practice” of “gedragscode”. Het rapport was zeer invloedrijk bij het ontwikkelen van organisatiecodes met betrekking tot de verantwoordingsplicht van externe aandeelhouders. Het is het begin van een nieuwe manier van denken over goed bestuur, ook in de publieke context.
This interview with Sir Adrian Cadbury gives the precise focus and the intention to look further into the essence of corporate governance. • Dit interview met Sir Adrian Cadbury geeft de precieze focus en de intentie om verder te kijken naar de essentie van corporate governance.
The report stipulated “the continuing concern about standards of financial reporting and accountability, … which has kept corporate governance in the public eye.” Some findings and recommendations (a personal selection) tell the story of the search for codes, checks and balances [quote]:
By adhering to the Code, listed companies will strengthen their control over their businesses and public accountability. In so doing, they will be striking the right balance between meeting the standards of corporate governance now expected of them and retaining the essential spirit of enterprise.
Every public company should be headed by an effective board that can lead and control the business.
However, the framework in which auditors operate is not well designed in certain respects to provide the objectivity that shareholders and the public expect of auditors in carrying out their function.
The new system has only recently been established, and its full impact has yet to be felt. In the following paragraphs, we endorse the steps being taken and recommend additional action to strengthen public confidence in the audit approach.
We believe that there should be an extension of the audit, which will add to users of accounts and bring it closer into line with public expectations.
So far as reporting fraud is concerned, the present legal position is that confidentiality is an implied term of an auditor’s contract, and there is a public interest in maintaining confidential client relationships. Normally, therefore, it is the auditor’s duty to report fraud to senior management. However, there is also a public interest in fraud being dealt with expeditiously and this may entail disclosing matters to a proper authority. [unquote]
• Het rapport vermeldde “de voortdurende bezorgdheid over normen voor financiële verslaggeving en verantwoording, … die corporate governance in de publieke belangstelling heeft gehouden.” Enkele bevindingen en aanbevelingen (een persoonlijke selectie) vertellen het verhaal van de zoektocht naar codes, checks and balances [citaat]:
Door de Code na te leven zullen beursgenoteerde ondernemingen hun controle over hun bedrijf en hun publieke verantwoording versterken. Op die manier vinden ze het juiste evenwicht tussen het voldoen aan de normen van corporate governance die nu van hen worden verwacht en het behouden van de essentiële ondernemingsgeest.
Elke beursgenoteerde onderneming moet worden geleid door een effectieve raad van bestuur die de onderneming kan leiden en controleren.
Het kader waarbinnen auditors werken is in bepaalde opzichten echter niet goed ontworpen om de objectiviteit te bieden die aandeelhouders en het publiek verwachten van auditors bij het uitvoeren van hun functie.
Het nieuwe systeem is pas onlangs ingevoerd en de volledige impact ervan moet nog merkbaar worden. In de volgende paragrafen onderschrijven we de stappen die worden genomen en bevelen we aanvullende maatregelen aan om het vertrouwen van het publiek in de controleaanpak te versterken.
Wij zijn van mening dat de controle moet worden uitgebreid, wat de gebruikers van de rekeningen ten goede zal komen en de controle meer in overeenstemming zal brengen met de verwachtingen van het publiek.
Wat het melden van fraude betreft, is de huidige rechtspositie dat vertrouwelijkheid een impliciete voorwaarde is van het contract van een auditor en dat er een algemeen belang is bij het onderhouden van vertrouwelijke relaties met cliënten. Normaal gesproken is het daarom de plicht van de auditor om fraude te melden aan het senior management. Het is echter ook in het algemeen belang dat fraude snel wordt aangepakt en dit kan betekenen dat zaken moeten worden gemeld aan een bevoegde autoriteit. [unquote]
The longer the Risk-Monger gets in the tooth, the more global mass panic events he has witnessed. Every crisis is a learning opportunity and as I had written in mid February, 2020. COVID-19, the Wuhan-originated coronavirus, has created a rich pedagogic environment.
When a train crashes, authorities are on the scene to determine the cause. The COVID-19 coronavirus is fast becoming a global train wreck and unless we quickly assess the mistakes leading up to this tragedy, more trains will pile into the station.
David Zaruk
Lessons are, unsurprisingly, being learnt the hard way with more mistakes sending the public health situation deeper into disaster. Worse, as our communications methods move from an expert-based model to a bottom-up citizen-based community model, our friends on social media become our main source of information.
Presentation by Jack Kruf with co-presentation by Leen Paape | March 2021
Jack Kruf
What have we learned from 2020? A reflection as a farewell lecture. Farewell. I felt a bit of resistance whilst shaving this morning. I’m not really one for goodbyes. But anyway, here I am.
Jack Kruf
This will be a plea to give the field of public risk management a boost. But answering the question? That’s not so simple. Geert Mak said it at the launch of his book Great Expectations: “Interpreting history isn’t easy when you’re still in the thick of it.”
With many friends and colleagues watching on TV, and with my family here at home. It’s lovely to have you all here. I’ll try to shed some light on things. Together with Professor Leen Paape. An honour. It will be a three-part series, taking turns. Three questions are central, followed by a brief conclusion:
What is the issue at the start of 2021?
What is the intervention?
What is the associated governance?
LeenPaape
Professor at Nyenrode following a career that alternated between the public and private sectors. Started at the Military Academy in Breda and, after the Ministry of Defence, briefly worked at KPMG, then KLM, PwC and finally Nyenrode. I have served on an Audit and Risk Committee for the Municipality of Rotterdam and the Ministry of Infrastructure and the Environment, and I now oversee an insurer, a pension fund and a large school organisation.
Leen Paape
My driving forces are accountancy, risk management and corporate governance issues. I have seen quite a few things go wrong and would like to help prevent that from happening.
Flooding, school fires, unemployment, urban development and IT safety are some of the large and complicated risk issues for public organisations. These issues are essential to any public CEO who is faced with risks that not only involve the organisation itself but often the whole community. Still, what is the best way to address these significant risks? Should public risk management aim to minimise risks at all times? Or will this approach keep the public organisations from innovating? Although tight budgets in the public sector often set a limit for a proactive approach, the fact that risks have many facets and also positive aspects cannot be ignored.
Allan Vendelbo, President UDITE
These views were repeatedly brought up and recognised by practitioners and experts at the PRIMO conference in Copenhagen on 25 November 2005. Although the conference offered no straight answers to the questions, their importance was clear to everybody.
150 participants from 10 European countries and the US joined the first international PRIMO conference. Some of PRIMO Denmark’s private partners presented their expertise in risk management at pitches in the breaks between the conference talks. Pull-ups flashed colourful logos of insurance, HR, IT and finance companies.
The recent outbreak of COVID-19 gives rise to some personal thoughts. Of course, we face a crisis and are trying to limit the outbreak. But we seem to have entered the middle of a movie, in a world, for most people, strange, where aliens are trying to take over our precious planet. Some reflections through some familiar lenses in the world of value and risk management.
Microscopy image showing SARS-CoV-2. The spikes on the outer edge of the virus particles resemble a crown, giving the disease its characteristic name. (source: Wikipedia).
Certain or uncertain?
Some say we are living in a volatile, uncertain, complex, and ambiguous (VUCA) world, and that this outbreak is related to this. I personally do not think along these lines of considering the world. I never did. I think we live in a highly sophisticated world where science is advanced, and experts are fully aware of most patterns. We live in a world full of certainties. VUCA is made up and non-existent in my view.
Uitgereikt te Rotterdamop 18 september 2020 aan Paul Hofstra.
The board of PRIMO Netherlands and the board of PRIMO Europe have awarded the PRIMO Risk Management Award 2019 to Paul Hofstra for his courage and leadership at the intersection of public value, public risk and governance.
Paul Hofstra
The award is based, on the one hand, on his mature leadership as a board member and director of the Rotterdam Court of Audit and, on the other, on his professional contributions to the precise and essential application of the principles of risk management, as set out, for example, in the reports Heat Without a Pipeline and Public Value Under Pressure.