§9651 Establishment of Risk and Audit Committees

Summary

The Corporation must set up two committees to help the Board: a risk committee and an audit committee. The risk committee must make and watch over the Corporation’s risk rules and global risk system. It must make company-wide risk policies that cover eight kinds of risk: strategic, reputational, regulatory, operational, developmental, environmental, social, and financial. It must build the Corporation’s risk profile and a risk management and compliance plan with clear oversight. It must also make procedures to check, before and while giving support to foreign entities, that those entities have strong anti-money-laundering and anti-corruption checks and that the Corporation does not support people who are knowingly corrupt, knowingly support terrorism/drug trafficking/human trafficking, or order serious human rights abuses. The audit committee must watch the accuracy of financial reports and statements, the strength of financial controls and accounting systems, the work of internal auditors, and compliance with laws and rules about the Corporation’s finances.