Presentation on

Corporate Governance
and Risk Assessment.
Presented by:
Falah-ud-din Sheryar
Shahood Anjum Janjua
Mohammad Omer Khan
Inadequacy of C.G arrangements

 Domination by members of family on board.

 No wider participation in board membership.
 No Non-Executive Directors (NEDs).
 Less rigorous CG requirement by the JPX’s
country.
 No proper Board Committee Structure.
 Negative local environment impact.
Risk exposure to Chemco on
JPX acquisition

 Foreign exchange risk.

 Risk of insufficient information on fair price to
pay for JPX’s shares.
 Issues relating to valuing stock of JPX.
 Risk of damage to GOODWILL of Chemco on
acquiring JPX.
 Changing the culture and system of JPX is
quite problematic.
 Environmental risk.
Risk Assessment
According to Turnbull guidance

 Identification of risks facing by the Company.

 Level of risk acceptable or bearable.
 Likely chances of risk materializing.
 Safeguards, To reduce impact of risks
materializing on business.
 Cost Benefit Analysis.
Advantages of Unitary board
 All members have equal legal responsibility.
 Presence of NEDs should lead to better
decision making.
 Relationship between different type of
directors to form strategy.
Explanation in the context of
JPX.
 Getting in line with Chemco.
 No ‘dominated discussions’.
 No exploitation of external shareholders.
 Quality decision making – seeing things from
different perspectives.
 Enhanced strategic planning.
 Accountability – less room for fraud.
 Minimizing Agency Problem.
Roles of NEDs
 Contribute to corporate strategy.
 Scrutinize Financial Statements.
 Evaluate risk management and control
systems.
 Executive Remuneration.
Contributions of NEDs to
improve governance of JPX
Board
 Mitigate family domination Business culture.
 Ensure compliance with C.G.Cs.
 Different perspective to things.
 Ensuring shareholders interest.
 Ensure departmental heads are also listened.
Explanation of Environmental
footprints
 Mark left by a company operation on its
environment.
 The impact of the size of the company on its
environment.
 The impact of policies of the company on its
environment.
 Utilization of natural resource and impact of
these utilization towards environment.
Importance of Environmental
Reporting for JPX.
 It shows environmental strategies to
stakeholders.
 Provide good impression to environmental
controlling bodies.
 Fulfilling Corporate Social Responsibility.
 Assurance of following environmental law.
 Enhancing the product worthiness.
Thank you…