The principles should be observed to achieve good corporate governance and are appropriate to almost any organisation, regardless of size, sector or location.
The credit crunch posed a grave threat to the economies of the developed and developing world. This paper sets out ACCA’s thoughts on what has happened and examines how sound corporate governance, risk management principles and accounting can help prevent it happening again.
Many of the causes of the credit crunch seem to be linked to a failure in corporate governance. Regulatory boxes may have been ticked but fundamental principles of good governance were breached. We believe there should be more emphasis on the performance of corporate governance than on regulatory compliance.