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SWiFT 3000 The new standard for Corporate Governance evaluation IMCA 7 September 2011 David W Duffy – Prospectus PowerPoint Presentation
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SWiFT 3000 The new standard for Corporate Governance evaluation IMCA 7 September 2011 David W Duffy – Prospectus . Agenda. 1. What Is SWiFT 3000?. 2. What are the benefits?. 3. Why should an organisation apply for the SWiFT designation?. How to get ready for SWiFT?. 4.

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SWiFT 3000The new standard for Corporate Governance evaluationIMCA7 September2011David W Duffy – Prospectus



What Is SWiFT 3000?


What are the benefits?


Why should an organisation apply for the SWiFT designation?

How to get ready for SWiFT?


what is swift 3000
What is SWiFT 3000?
  • Produced by a corporate governance working group convened by the NSAI and supported by IoD, CGAI and IPA.
  • Provides a best practice Irish specification for the conduct of an external evaluation
  • Facilitates the external assessment of Corporate Governance performance by providing a standard framework of assessment of compliance with relevant codes
  • The assessment is confidential and voluntary
  • The objective is to assess the corporate governance frameworks of companies and specifically the level of compliance by companies with governance codes of best practice relevant to them:
    • OECD Principles
    • Combined Code on Corporate Governance
    • Code of Practice for the Governance of State Bodies
following codes are in development
Following codes are in development
  • ISE (UK code of Corporate Governance) for Irish Plc.'s
  • Corporate Governance Code for Credit Institutions and Insurance Undertakings
  • Corporate Governance Guidance and Principles for Unlisted Companies in Europe ecoDa
  • Codes In Development for; Family, SMB, Voluntary, Funds
  • Relevant sectoral Codes as approved for inclusion as they emerge
swift 3000 scope and process
SWiFT 3000 – Scope and Process
  • Scope of the assessment will examine the following:
    • Board Composition
    • Board Processes
    • Execution of Board Role
  • Companies which meet the specifications of the Code will be awarded the SWiFT 3000 Certification by independent accredited certification bodies.
    • Certification Europe
    • NSAI ey
assessment methodology process overview
Assessment Methodology: Process Overview

Phase 1

Planning & Preparation


Initial Review


Interview & Follow-Up

Phase 4

Reporting & Follow-Up

the main bodies involved in swift3000 auditors
The Main Bodies Involved in SWiFT3000 (Auditors)

Association of Accredited Certification Bodies

Oversight Committee






Certification Body (CB)

Audit Team - Technical + Process Auditor

Client seeking certification to SWiFT 3000

the main bodies involved in swift3000 auditors1
The Main Bodies Involved in SWiFT3000 (Auditors)
  • In SWiFT 3000 there are two types of auditor
    • ‘Technical Auditor’:
      • Any assessor on the list of ‘Appointed Assessors’ as maintained by the Oversight Committee. At present determined by successful completion of exam on approved affirmation courses.
    • ‘Process Auditor’
      • A practicing & experienced management system auditor working with the CB, & approved under the ISO 17021 competence assessment. Furthermore will have attended a designated corporate governance affirmation course.
swift 3000 scope and process1
SWiFT 3000 – Scope and Process

People interested in becoming accredited corporate governance assessors are

required to:

  • Meet the criteria specified in Annex C – “Assessor qualifications and other conditions” as per NSAI SWiFT 3000 available on; AND
  • Undertake and successfully complete a three day programme on corporate governance being run by Prospectus -
benefits of swift
Benefits of SWiFT
  • Provides external, independent, validation of good business standards and a healthy Governance environment
  • Is an affirmation of a proper functioning business and Board
  • Certifies the right “tone from the top”
  • Benchmarks theBoard against its peers
  • Will help in attracting higher calibre board members
  • Plays a part in restoring business trust and confidence in Ireland
the swift standard will set organisations apart for their high standards of corporate governance
The SWiFT standard will set organisations apart for their high standards of corporate governance
  • Reassures stakeholders, staff, customers, suppliers and investors
  • Recognises a Board’s commitment to real Governance
  • Enhances reputation, profile, business
  • Sees past rhetoric and hollow written claims
  • Facilitates real openness and transparency
getting ready for swift
Getting ready for SWIFT


Key gaps

Improvement plan



>>>>> following shows the elements of the SWIFT process

scope of the assessment
Scope of the Assessment

The Corporate Governance Assessment involves examination of three core areas:

  • Board composition
  • Board processes
  • How the Board executes its role

These 3 areas encapsulate the main principles of the relevant codes of Corporate Governance best practice.

the assessment methodology
The Assessment Methodology

The assessment methodology is crucially evidencebased and

principally relies on the following:

  • Board documents & records relevant to the scope of the


  • Questionnaires
  • Interviews
a sample of board documents that could be reviewed
A sample of Board Documents that could be reviewed
  • Board procedures, board documents, records
  • Board terms of reference
  • List of matters reserved for board's decision
  • Schedule of board and committee meetings for the prior and current year
  • An appropriate sample of board meeting agenda and supporting documentation
  • Board Minutes
  • Internal audit work plan
  • Audit committee papers
  • Committee terms of reference
  • latest set of annual report and accounts
  • Strategic plan
a sample of pre assessment questionnaire to board members
A sample of pre-assessment Questionnaire (to Board members)

The Board

  • By what means does the board direct and control the company?
  • Does the board have processes in place for succession planning?
  • Has the board ensured that systems of risk Management and other systems of internal control are established and operate in practice?

Board balance regarding appointments and independence

  • Are the range of skills, knowledge and experience on the board appropriate?

Information flows

  • Is the form and quality of the information supplied to the board appropriate to enable it to discharge its duties?
  • How does the company secretary ensure good information flows between senior Management and non-executive directors?
a sample pre assessment questionnaire to the company secretary or designated representative
A sample pre-assessment Questionnaire(to the Company Secretary or Designated Representative)


  • What committees are established and who are the members?
  • Are the mandates for the board and committees clear and effectively defined?
  • Are there independent directors and do they meet the independence criteria in the Combined


  • Has the board appointed an independent non-executive director to be the senior independent


  • Do all directors receive induction on joining the board?

Board evaluation

  • Does the board undertake a formal and rigorous annual evaluation of its own performance?
  • Does a similar evaluation of the performance of committees take place?
  • Is the performance of individual directors also evaluated?
a sample pre assessment questionnaire to the company secretary or designated representative1
A sample pre-assessment Questionnaire(to the Company Secretary or Designated Representative)


  • Is there a board remuneration committee operating in accordance with the provisions of the Combined Code?
  • Are there procedures in place to avoid conflicts of interest in setting levels of remuneration?

Accountability and Audit

  • Has the board adopted policies governing corporate conduct, including compliance with applicable laws and regulations?
  • Does at least one member of the audit committee have recent and relevant financial experience?
detailed review of board composition
Detailed review of Board Composition
  • Responsibilities of the board
  • Composition and structure of the board
  • Balance and Diversity
  • Skills expertise and experience
  • Chairman/CEO separation
  • Election of directors
  • Time commitment
  • Board Independence
  • Composition of board committees
  • Role of the chair
  • Lead independent director
  • Company secretary
  • Knowledge of company
  • Appointment of directors
  • Information on board nominees
  • Board induction, and development
  • Related Party Transactions
  • Director Declarations
  • Conflicts of Interest
board processes
Board processes

Processes relate to the underlying mechanisms used by the board.

The following are assessed:

  • Collective responsibility of the board,
  • Terms of reference (Board and Committee(s),
  • Matters/decisions reserved for the board/Management,
  • Board meeting process,
  • Committee meetings,
  • Decision making process,
  • Information flows (between Management and the board and between the board and stakeholders).
finally some thought s and observations
Finally, some thought's and observations….
  • Moving beyond ticks in boxes, “hassle” to embedded CG environments
  • Reputational risk damage, is a strong driver and desire to avoid the mistakes of the past
  • Genuine desire to improve business culture is more evident
  • This is unique in Europe!
swift programme leaders
SWiFT Programme Leaders

Title: Head of HR Practice, Prospectus


Phone: +353 1 218 0319

Fax: +353 1 260 3130

Pedro is responsible for the ongoing development of the Prospectus HR

Consultancy Practice, including business development and the delivery of innovative HRM and organisational development initiatives and projects

He has over 10 years HR consulting and executive development experience. Prior to joining Prospectus Mr. Angulo has worked in senior management roles in Penna, Deloitte, IBM Business Consulting Services and PricewaterhouseCoopers in Dublin

Pedro has led the design and implementation of large-scale human resources with both national and international clients, in the public and private sectors. Some of his clients include: DIT, Integration Centre, British American Tobacco, Holcim, UCD, ESB, National Concert Hall, Combat Poverty Ireland, Bord Gais Eireann, INTO, Port of Cork, European Rugby Cup, St. James’s Hospital, National University of Ireland, DSFA, Musgrave, ICON, O2, Permanent TSB, Teagasc, Enterprise Ireland, Glanbia, Tesco, AIB, Revenue Commissioners, Diageo, and Kimberly Clarke

For a number of years, Pedro has been a part-time senior lecturer and examiner in the Michael Smurfit Graduate Business School

Pedro holds an MBS in Management from UCD, is a member of the IMCA, and a Board member of the EMCC

Title: Director, Prospectus


Phone: +353 1 218 0304

Fax: +353 1 260 3130

David is the founder and a director of Prospectus. He graduated from Trinity College Dublin with a Bachelor of Business Studies Degree and is a Chartered Accountant. He also holds an MBA from IMD in Lausanne, Switzerland

He has extensive experience in planning and implementing significant strategic, management and organisational change, and advising on corporate governance in the public, private and not for profit sectors

He is a member of the Institute of Directors and was President of the Institute of Management Consultants in 1992 and 2007

He is also the author of a book published by Prospectus in May 2004, titled “The Management of Management – A practical guide to Corporate Governance”.Prospectus is bringing out a new book on corporate governance in the 2011 to build on the success of the last publication

David has led the governance reviews of a number of organisations including: Institute of Taxation in Ireland, HEA, Royal Hospital Donnybrook, National University of Ireland at Maynooth; St Vincent’s Healthcare Group; EBS, Health Research Board; Revenue Commissioners. Radiological Protection Institute of Ireland; Public Appointments Commission

getting ready for swift the three day training programme
Getting Ready for SWIFT- The Three Day Training Programme

Objectives and Agenda

  • At the end of this programme participants will have:
    • A clear understanding of SWIFT 3000
    • Improved their knowledge of the Codes
    • Further develop their corporate governance assessment skills