Corporate Governance and Risk Assessment at JB Hi-Fi: A Comprehensive Analysis

HI6026 - Audit, Assurance and
Compliance
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Table of Contents
Executive summary.........................................................................................................................3
ASX Corporate Governance Principles...........................................................................................4
Lay solid foundations for management and oversight.................................................................4
Structure the board to add value..................................................................................................4
Act ethically and responsibly.......................................................................................................5
Safeguard integrity in corporate reporting...................................................................................5
Make timely and balanced disclosure..........................................................................................6
Respect the rights of security holders..........................................................................................6
Recognise and manage risk.........................................................................................................7
Remunerate fairly and responsibly..............................................................................................7
Risk assessment...............................................................................................................................8
References......................................................................................................................................11
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Executive summary
In the company, there is the need that the proper directions shall be provided so that objectives
can be attained and also the control will be made on all the activities. For this purpose, a process
will be performed which is known as corporate governance. This is required to be complied by
all as per the principles which have been stated by ASX. This report will be explaining the
implication of all the corporate governance principles on the JB Hi-Fi. All of the aspects in
relation to it will be considered in detail. The process which is involved in risk assessment will
also be taken into consideration and in that the strategies which are followed together with the
risk which are involved in business will be identified. The risk will have to be reduced and all the
steps in relation to it will also be determined.
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ASX Corporate Governance Principles
Lay solid foundations for management and oversight
The principle states that in the business it is very important that proper management shall be
present and for that board shall be developed in which responsibility of all will have to be
identified (Akbar, 2015). The role which is to be performed by them is also specified which will
make the whole process a success. In this corporate governance will also be taken into
consideration as by that all of the tasks will be monitored.
The implication for JB Hi-Fi:
The operations which are performed will be affecting the shareholders and due to this board is
accountable to them. So that main role of the board is to protect the interest of shareholders and
improve the value of them in long-term (JB Hi-Fi, 2017). The main responsibility of the board is
to develop such strategies by which the objectives of business will be attained. All the operations
will be managed in such manner by which profitability of the company will be increased.
Structure the board to add value
According to this principle, the business will be able to add value to itself only when the proper
board composition will be made. There shall be such structure in which the members have
required skills and competence and this will have to be noted while making the appointments. By
the help of this proper management will be ensured and there will be a development which will
be taking place.
The implication for JB Hi-Fi:
The company is of the view that proper decisions will be made and also effective governance
will be there if the board will have skilled and experienced members. In the opinion of the
company, there is a proper composition which is maintained by it and by that all the operations
are performed effectively by committee (JB Hi-Fi, 2017). There are mainly non-executive
directors in the board and they are six in number and they are as follows:
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