Risk and Corporate Governance

Risk

Risk has never been more in the forefront of peoples minds than today, recent world events have caused risk management and mitigation to become bywords in many a boardroom and management meeting. Businesses that had previously been oblivious or perhaps less focused on risk have now had their minds sharply attuned to this most elemental of business rules - no risk no reward, but equally with reward comes greater risk. In its simplest form, risk is managed in one of three ways: stop the activity, transfer the activity or mitigate against it. Incorporating adequate risk management within operational activity is paramount to delivery of successful business.

Corporate Governance

Corporate Governance has received a similar public focus over the last couple of years and has resulted in an increasingly tighter regulatory environment in which businesses operate, and that is not merely licensed activities either: in the Isle of Man the latest Anti Money Laundering legislation requires far more businesses to adopt these rules, and they can be bewildering at least. Not only in account opening and business take on, but in the ongoing client/customer relationship, must certain procedures be followed and implemented on a regular basis. The old rules of thumb, where amounts over £10k or an address ending in ‘stan’ meant further attention was required, are long gone: every account needs to be risk weighted at opening and ongoing monitoring is needed in order to comply with the regulations that now surround far more non financial businesses.

Freedom to Flourish

The Isle of Man is an AAA rated jurisdiction (source: http://www.gov.im/iomfinance/About/ sovereign.xml) so you have already made a wise choice. To build on this you need to optimise the infrastructure available to you on the Island. Whether it be communications, systems, personnel or premises, Cornerstone has the contacts to help you make those choices with clarity. Your business is unique; it deserves unique solutions and to do that you need the help provided by Cornerstone.
The IOM Government is committed to making your business succeed:

(Source: http://www.gov.im/cso/flourish/)

Together with a basic rate of Company tax of zero %, a personal tax cap of £115k, the Isle of Man really is the premier location.

Transparency

This freedom to flourish, yet within a strongly regulated and controlled environment demands greater transparency coupled with increased responsibility. Every Board of every business, needs to ensure its business is conducted in the most appropriate, most balanced way, that ensures proper delivery of their duty of care and skill. By encouraging and implementing wise risk policies and management strictures, in the wise and complete engagement with corporate governance, Boards are able to look in the mirror and see that they are indeed working to ensure the continued success of the Company (a prime directive of the UK Combined Code which is mandatory for listed Companies and best practice for others). Cornerstone can help you to ensure your transition to being fully compliant from a regulatory perspective; being on top of your game from the risk management and awareness aspects, that position your business ready to take advantage of all that your competitive environment presents to you.

Use our experience to your advantage.

Risk and Corporate Governance