jerryking + information_sources + information   2

Lessons I learned from SNC-Lavalin’s woes
Jul. 26 2013 | - The Globe and Mail | by GWYN MORGAN.

Information is key

Because directors get most of their information from people within the company, they need to do everything they can to build and diversify their sources. There should be a robust whistle-blower system, independent of management, so employees can pass on information to directors without fear of reprisal.

Financial reporting structures matter. Internal auditors should report directly – and only – to the chair of the audit committee, not to management. The chief financial officer should have a direct reporting relationship to the audit committee chair. Operating division comptrollers should report to the CFO, not to the division leader or the business-unit head.

Focus on leadership

It’s important to have strong financial controls and ethical codes, but they will fail unless all people in leadership roles, from the CEO on down, follow them diligently and consistently.

Culture, culture, culture

It is said that corporate culture is defined by how people act when no one is looking. But it is also defined by how employees react when they see behaviour that is inconsistent with the values of the organization. When their reaction is, “We’re not going to let this happen in our company,” the organization is built upon a solid ethical foundation.
Gwyn_Morgan  boards_&_directors_&_governance  lessons_learned  SNC-Lavalin  scandals  engineering  information  information_flows  financial_reporting  financial_controls  auditors  CFOs  leadership  organizational_culture  whistleblowing  ethics  information_sources  reprisals 
july 2013 by jerryking
Take a page from spy manuals: Grade your informers
September 9, 2006 | Globe & Mail | AVNER MANDELMAN. If
you invest like a sleuth you need informers -- the better they are, the
better your chance of making money. But how to separate good information
sources from the mediocre and the bad? After all, info and advice are
everywhere -- brokers' analysts, newspaper columnists, industry experts,
and best of all, corporate personnel and customers who know the real
score. Lots of sources, not much time to digest them all....view
informers as intelligence sources and grade their performance, as
intelligence services grade theirs. Just how do professional
intelligence services manage it? Here we must go into the realm of
hearsay. The best intelligence services, it is said, rank their
informers by two categories. First is the informer's reliability, based
on his or her record. Second is the informer's own confidence in this
particular info. The first "letter grade" is given by the case officer
-- the agent-runner; the second by the agent.
Avner_Mandelman  security_&_intelligence  information  informants  grading  spycraft  performance  rankings  reliability  confidence_levels  information_sources  assessments_&_evaluations  intelligence_analysts 
may 2011 by jerryking

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