Good governance is fundamental to the effective functioning of the world’s capital markets and to organizations in creating sustainable value for their stakeholders. IFAC strongly believes that the ultimate objective of governance is to ensure the creation of sustainable organizational success and stakeholder value; these are the core elements of every organization that strives to be competitive and sustainable over the long term.

IFAC believes good governance, risk management, and internal control are fundamental to the effective functioning of the world’s capital markets and to organizations, including banks in particular, in creating sustainable value for their stakeholders. Overall, IFAC welcomes enhancements to the Basel Principles as they aim to strengthen risk governance, clarify the role of the board of directors in this regard, emphasize board competence, provide guidance for bank supervisors, and point out the influence of compensation systems.