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Composition of Board
CRISIL looks at the composition of the Board and its sub-committees.
Boards should be structured in such a way that the interests of all the
shareholders and stakeholders are respected, represented and protected.
CRISIL evaluates whether the Board contains a good balance of independent
and executive directors, and whether the Board has the right mix of various
capabilities required for governing the company, taking into account the
size, industry nature and growth objectives. The analysis also includes
aspects like selection process for Board members, succession policies for
Board members, processes for ensuring availability of relevant competencies
on the Board, and Board compensation.
unctioning of Board
CRISIL examines the functioning of the Board and its sub-committees and
assesses the Boards role in providing independent oversight of
management performance. Effective Boards are active, engaged,
challenging and questioning in attitude, and exhibit true independence in
action. CRISIL assesses Board effectiveness in terms of the role the Board
has played in directing, articulating and implementing the companys
strategy, overseeing the performance of management, and monitoring
operational controls and risk management systems. CRISIL also examines
the role and contribution of independent directors.
anagement assessment
CRISIL looks at the reputation, experience, performance and skills of the
management. These enable the management to create value for
stakeholders. The success of past strategies, proactive nature of
management in identifying threats and opportunities in the operating
environment, integrity of the senior management, and risk appetite of the
management, are some of the key areas CRISIL examines while carrying
out a management assessment.
Source: www.crisil.com