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BRUSSELS—The Federation of European Risk Management Assns. and the European Confederation of Institutes of Internal Auditing have published the second part of their best practice guide on the E.U. 8th Company Law Directive.
The two Brussels-based organizations published the first part of their guide to the rules, the European equivalent of the U.S. Sarbanes-Oxley Act, in September.
The guide offers real life examples of FERMA and ECIIA members, the two bodies said in a statement.
“Good governance depends on managers being conscious that good control reinforces management systems,” FERMA President Jorge Luzzi said in the statement. “With this part two of the guidance, ECIIA and FERMA aim to provide senior executives with practical guidance adapted to the culture, activities and organization of their companies.”
The guide prompts managers to ask several questions, including whether risk management processes are in line with the company’s objectives and whether the independence of risk management, internal control and internal audit functions is guaranteed.