KPMG Sri Lanka Hosts 27th Audit Committee Forum
KPMG Sri Lanka Hosts 27th Audit Committee Forum, Diving into Enhanced Responsibilities for Risk Oversight
KPMG Sri Lanka hosts 27th Audit Committee Forum
In a dynamic effort to bolster corporate governance and strengthen the oversight of risk management, KPMG Sri Lanka recently convened the 27th Audit Committee Forum. The forum, centered around the theme of "Audit Committee Responsibility for Risk Oversight," based on into the pivotal amendments introduced by the Colombo Stock Exchange (CSE) to Section 9.13.4 of the Listing Rules. The revised section, focusing on the 'Functions of Audit Committee,' emphasizes the critical role these committees play in fortifying a company's risk management framework specifically focusing on institutions without a distinct Board Risk Sub Committee.
The session included a presentation by Aruni Rajakarier – Founder & Director of She Consultants Pvt Ltd, followed by an insightful panel discussion with the participation of Saktha Amarathunga -INED, Carson Cumberbatch PLC & Hemas Holdings PLC, Ronnie Peris- Leadership Coach, Mentor & Consultant, S. Renganathan – Director Sunshine Holdings PLC & Former CEO of Commercial Bank of Ceylon PLC and Aruni Rajakarier moderated by Suren Rajakarier, Chief Operating Officer & Head of Audit & Assurance of KPMG Sri Lanka and Chair, Sri Lanka Institute of Directors Audit Committee Forum.
Audit committees continue to express confidence in their oversight of core responsibilities—financial reporting integrity. However, role of an audit committee has changed from overseeing the internal control and financial reports to more boarder areas such as overseeing compliance function, ESG Reporting & cyber security functions.
- Know your Business (KYB) which is crucial to have an in-depth understanding of the entire business.
- Know the value in Risk management.
- Proper Risk management culture should be in place.
- Proper policies and manuals to run the operations in the company.
Some of the key learning outcomes from the panel discussion could be summarized as,
- Having a risk management mission is vital to any organization.
- A governance pillar for risk management should be in place.
- Cybersecurity and Sustainability continue to be a top priority.
- Companies should continue to provide quarterly earnings guidance.
- It is essential to have adept and competent board members to instill confidence in their supervision of fundamental responsibilities, such as maintaining the integrity of financial reporting and ensuring audit quality.
Moreover, the panel stressed the significance of creating a Risk Oversight Committee in companies, particularly those in non-financial sectors, that lack a board-level risk management committee. This is to effectively address risks and implement appropriate measures.
The session continued to delve into the aspects that Audit Committees might need to tackle concerning financial and business risks. There was an emphasis on the necessity for robust management review processes and while also highlighting the importance of the audit committee possessing a thorough understanding of fundamental risk management principles. This knowledge is crucial for effectively evaluating the performance of internal controls.
In an era where businesses face an array of complex risks, the 27th Audit Committee Forum organized by Sri Lanka Institute of Directors with KPMG Sri Lanka onboard as the Knowledge Partner, emerges as a pivotal platform for fostering collaboration, sharing best practices, and elevating the standards of corporate governance in the Sri Lankan business community. As companies navigate an increasingly uncertain global environment, the role of Audit Committees in ensuring robust risk oversight has never been more crucial.