The board should set the values, ethos and culture of the association, having regard to the internationally acceptable values and principles. The board must ensure that, in running the association, the executive management maintains the values, ethos and culture and should ensure that the association’s obligations to members and other stakeholders, in particular employees, customers, suppliers and the community, are understood and met.
- The board is responsible for ensuring that risk management is properly addressed within the association.
- The board, with input from the executive management, has the ultimate responsibility for identifying the key business risks faced by the association.
- The board should determine the types of risk the association is prepared to take.
- The head of internal audit and risk, or equivalent, should assist the board to identify the major risks the association is facing and work with it to develop plans to control, monitor and minimise these risks.
- The board should ensure that the executive management maintains a sound system of internal control and risk management.
- The board should ensure that it has appropriate means of controlling and receiving information.
- The board should meet sufficiently regularly to carry out its duties.
- There should be a formal schedule of matters specifically reserved to the board.
- The annual report should state how the board operates and which types of decision are taken by the board and which are delegated to the executive management.
- The annual report should set out the number of meetings of the board and committees held during the year and individual attendance at these by directors.
- The board should ensure that the association maintains robust and defensible risk management and internal control systems and how it has done this should be set out in the annual report.
- The board should satisfy itself, having received advice from the management executive, on the integrity of financial information and other critical structural and operational procedures.
- The secretary should arrange appropriate insurance cover in respect of potential legal action against directors.
- In the event of a solvent dissolution any surplus arising should be distributed in accordance with the Association Articles.
- Depending on the size, complexity and risk profile of the association it may provide half-yearly Interim Statements of Trading Activities to members.
- The board must satisfy itself it has spent an appropriate amount of time discussing reports on the performance of the association. A report of the performance of the association should be set out in the annual report.