Supervisory board in some Azerbaijani companies has limited powers, Advisory Director of Deloitte Azerbaijan Tural Hajiyev said during a forum on risk management in Baku on May 19.
He said that this fact was revealed during the assessment of corporate governance in companies across the country.
“The report, which was prepared on the basis of the survey results, includes assessment of the situation in the financial, telecommunication and other spheres,” Hajiyev said. “In general, we analyzed 45-50 companies. The answers of the respondents showed that the supervisory board cannot conduct assessment of a company’s activities or dismiss its executive director, as well as chairman and members of the board. I believe that it is necessary to carry out specific work in this direction.”
He added that the survey also covered the level of risk management in the sector of information technology and management mechanisms.
“One of the negative factors is related to the audit process in Azerbaijani companies,” Hajiyev noted. “About 12 percent of the respondents said that the audits don’t cover the risks associated with information technology and security, and this shows the ineffectiveness of the internal audit function. The second problem is the lack or inefficiency of the technology committees’ operation.”
“Only seven percent of the respondents talked about the availability and efficient operation of technology committees in companies,” he added. “Some 93 percent of respondents said that technology committees in companies are either absent, or operate inefficiently. In addition, IT security risk assessment is not carried out in companies.”
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