CORPORATE GROUP 5

GOVERNANCE
 Introduction
•The Royal Charter in January 1988,
incorporated BDBL with assistance from
the Asian Development Bank (ADB) to
function as a development financial
institution (DFI).
•Its core values are listed as PEOPLE.
•Vision- To be a strong, dependable, and
customer-focused organization.
•Mission- To be a premier development
bank.
 Purpose of the
Assignment
• To gain an insight into the governance
issues in the organization, based on
cases published by the media.
• To Identify the loopholes in the
structure of the organization.
• To express a viewpoint on our findings.
Loopholes
 Ineffective Operational Risk
Loopholes in Management.
the governance Lack of adequate internal control
system
structure of the
Non-Compliance
Organization
Lapses in Internal Audit Procedures
 Ineffective Operational Risk Management

Tsirang embezzlement
section 6.4 of the risk
identify and assess case occurred for a
management
the operational risk. continuous period of
guidelines of RMA
7 years (2012-2019).

failed to develop a well-defined,

vibrant operational transparent, and Operational discipline
risk governance consistent lines of was inadequate
structure. responsibility.
 Lack of adequate internal control system

Accurate communication of information, monitoring of

control processes, and control of operational activities.

Tashigang embezzlement case.

Section 3.5 of RMAs risk management guidelines.

communication gap of the manager.

Non-
Compliance
• CG Rules and Regulation
• independent compliance
function
• effective compliance of laws,
rules, regulations, and
directives
• project officer, which
amounted to Nu 576 million.
• monthly disbursement report
Lapses in Internal Audit Procedures

section 16 of the CG Rules competent and professional

and regulations. internal auditors.

internal audit of BDBL was Tsirang embezzlement case

inadequate for seven
Feasible Solutions
 Weak Internal
Control
Implementation of comprehensive
internal control and compliance
framework.
 • Conduct “Information System • Implement the “Risk-Based
Audit” at regular intervals. Audit” approach in internal audit
practices.

Internal Audit Practices

 Risk Management
Practices

• Chief Risk Officer (CRO) shall be

responsible for overseeing the
development and implementation
of the regulated entity’s risk
management function.
CONCLUSION
LEARNING ON CORPORATE
COVERNANCE