The organizational structure constitutes the overall framework to manage a business entity. The development of organizational structure is dependent on several factors and elements, which ultimately results in organizational units that operate as per effective business process flow. This makes the organizational structure a well-defined and clear framework to operate accordingly and helps achieve effective internal control and enhance performance efficiency. This concept applies to all business entities.
For companies regulated by Capital Markets Authority in the State of Kuwait, they should comply with the requirements of the Executive Regulations of Law No. 7 of 2010 comprising sixteen modules where Module 15 – Corporate Governance – contains the controls and criteria related to mandatory organizational units to be considered when developing the organizational structure.
Module 15 – Corporate Governance sets forth:
|Article 6-3||A Company’s organizational structure, as approved by the Board of Directors, shall have an independent department/ office/ unit of risk management, which shall primarily measure, monitor and mitigate all types of risks encountering the company…|
|Article 6-6||The company shall have internal control systems, which cover all the company’s activities. The internal control systems maintain the company’s financial soundness, data accuracy and effectiveness of its operations in various aspects; provided that the company’s organizational structure shall consider the Four Eyes Principles of the internal control process (Four Eyes Principles).|
|Article 6-7||The company shall set up an independent department/ office/ unit of internal audit, which will have complete technical independence.|
Added value to business entities from Organizational Structure Services
- Define the organizational competencies of the organizational structure units in order to improve performance and enhance efficiency of operations.
- Define the internal controls based on a clear design.
- Ensure compliance with regulatory requirements related to the structure systems.
Services provided by Baker Tilly
- Development of organizational structure.
- Development of organizational competencies.
Other related services
- BOD & its Committees Charters
- BOD & Executive Management Appraisal System
- Delegation of Authority Matrix
- Code of Professional Conduct and Ethics
- Policies and Procedures Manuals
- Job Structure
- Job Descriptions
- Salary Survey
- Compensation & Benefits Structure
- Employee Performance Appraisal System
- Corporate Governance Reporting
- Business Continuity Management