The IIA Supports the G20 in Promoting Effective Governance
Call to Action Seeks Further Strengthening of Guiding Principles
Three Lines Model Offers Foundation for Improvements
The IIA urges the G20 to reinforce its commitment to global economic stability and to strengthen the integrity and accountability of organizations by adopting essential elements of governance — accountability, informed action, and assurance — into its G20/OECD Principles of Corporate Governance.
Regardless of industry, government, or size of an organization, governance can function successfully only if it has, at its core:
Accountability
Accountability, by a governing body to stakeholders, achieved through transparent oversight, integrity, and leadership. Governing bodies must ensure disclosure are accurate, timely, reliable, comprehensive, and in compliance with legislative and regulatory requirements, andethical norms.
Action
Reliable and well-informed action by management, including risk-based decision-making and judicious application of resources. This is critcal to achieving the objectives of an organization. Management must provide direction and ensure analysis, planning, monitoring, risk oversight, and reporting back to the governing body.
Assurance
Independent and objective assurance and advice, which is crucial to clarity and confidence, and to promoting continuous improvement through rigorous inquiry and insightful communication. This is achieved through a fully resourced independent internal audit function that operates in accordance with international standards.
Independent and objective assurance and advice, afforded through well-resourced internal audit activities, are crucial to effective governance. And relying on the Three Lines Model greatly assists organizations in ensuring preparedness, resilience, and agility in these volatile times.