Sarajevo, Bosnia and Herzegovina, November 4, 2013
—IFC, a member of the World Bank Group, is supporting the development of national training organizations dealing with corporate governance across Eastern Europe. In partnership with the Bosnian Institute of Directors, IFC is conducting a workshop in Sarajevo for 15 partner institutions from 10 countries to introduce, strengthen and promote effective control environment training and services for clients.
Oliver Orton, IFC’s Regional Corporate Governance Program Manager for Europe and Central Asia, said “Many financial crises and corporate governance failings within the last two decades can be attributed to poor control environments that hamper the soundness and efficiency of companies, including inadequate internal controls, ineffective internal audit, and poor risk governance and compliance functions. As a result companies may face reputational risks, financial consequences and even civil and criminal penalties for deficient control environments.”
The partner institutions comprise institutes of directors, corporate governance associations, chambers of commerce, consulting companies and other entities committed to promoting corporate governance in their markets.
The workshop in Sarajevo will familiarize participants with IFC’s tools on the control environment based on its Corporate Governance Methodology. IFC’s Methodology represents a set of guidelines to support sustainable economic development in emerging markets and developing countries and a curriculum that offers a set of bank governance materials designed to help partners provide training to bank directors and senior managers.
Branko Kecman, Board Member of the Bosnian Institute of Directors, said, "Very few domestic companies truly think about or try to manage risks; as a result many formerly successful companies have gone into bankruptcy over the previous several years. Our aim with this event is to increase the knowledge of the local consulting base to work with companies on improving their risk governance using tested methodologies".
The workshop will be followed by a one day training event, also organized with the Bosnian Institute of Directors, dedicated to the benefits of developing sound internal control environments.
This initiative is part of IFC’s Corporate Governance Program in Europe and Central Asia, which provides advisory services to help promote and implement good corporate governance practices in the region. IFC’s Corporate Governance Program in Europe and Central Asia is supported principally by the Swiss State Secretariat for Economic Affairs (SECO) with further support from the Development Bank of Austria (OeEB).
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