The Bank of Russia has drafted recommendations for public joint-stock companies on the best ways to set up integrated systems of risk and internal control management, as well as internal auditing.
The document contains a methodological framework which will help companies create processes, improve their organisational structures, and strengthen the role of boards of directors as well as their core risk and auditing committees. The recommendations also include a sample check list to help identify problem issues and development areas.
The recommendations become especially relevant due to the enactment of the provisions of the Federal Law ‘On Joint-stock Companies’ on 1 January 2021. These require a mandatory establishment of auditing committees under boards of directors and internal auditing at public joint-stock companies.