Governance: Management and internal supervision
Financial institutions must have in place a good system of corporate governance. One of the elements of good governance is a clear, balanced and adequate organisational structure, both generally and at the level of management and internal supervision (Section 17(1) of the Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft or Bpr).
Financial institutions should have a clear, balanced and adequate system of management and internal supervision, including a clear, balanced and adequate division of tasks, powers and responsibilities, adequate records of rights and obligations, clear reporting lines and an effective information and communication system. The following pages provide more information about different aspects of the organisation of management and internal supervision.
Control functions that a financial undertaking ought to have include:
- Chief risk officer: responsible for the risk control function
- Compliance function
- Risk management function
- Internal audit function
And for insurance also:
- External audit function
- Actuarial function