Another View: MF Global's Corporate Governance Lesson - NYTimes.com:
Must read article.. below are my thoughts:
Surely, a well nurtured and fed \"compliance officer\" who has not got a board seat nor power could no do much, except raising alarm bells.. given the culture of even most CTO and senior most HR officers do not have board roles, means that this will not change anytime soon.
What is worst is that the capital market is veered towards tactical maneuvers to produce short term results, especially for main market listed major corporations..
It is no wonder that all we hear about is mis-use of funds, write-downs etc. after over expansions and bad acquisitions...
Surely what market needed is senior executives take on 'personal' liabilities to their decisions, in this case, like a Mr. Corzine LLP fund... then if his personal net-worth is in fact at risks.. by the decision he makes (& of course awards also), he would definitively be actively seeking AND taking heed of the feedback from the Chief Risk/compliance officer..
Reward must comes with equal amount of risks.. Sadly the present capital market is such that there is not that linkage anymore and every entity is aiming for the short term gains...
Sadly, all these better monitoring and ratios are still after the fact and trying to 'predict what has happened'.. what the whole capital market world desperately need is a 'predictive' eco-system, which sadly most 'power that be' are preferring the status quo.. can we blame them??
Unlike most of the top guys, these common sense approach can arguable be reach by only joe-blog like me who is not pondering from Monaco nor the Hamptons..
In short, we need a fundamental shift to the mindset and indeed the value chain before anything can be done, the well nurtured and fed compliance officers will then play a major role then, but sadly not before, as they are at present more to do what is asked & to keep the regulators happy.
Warmest seasons greetings to all.
Best regards
@GarethWong
Founder of GamBond®
(starting a new 'industry default risk'category)
http://gw.cxovip.org
"Ultimately, this is not about what really happened at MF Global between Mr. Corzine and the firm’s former chief risk officer. We will leave that to Congress, the regulators and, probably in the end, to the judicial process. Not every corporation loses track of $1 billion of customer funds; but just about every corporation has a compliance or risk officer function. So, the practical lesson from this mess is the risk associated with mishandling the compliance officer relationship. Or, more directly, the need for corporate leadership to be sensitive to the “care and feeding” of the compliance officer. For, as the news reports make so very clear, the cost of failing to do so is very high."
Sunday 18 December 2011
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