According to Regulation COBAC R-2016/04 relative to internal control in credit institutions and financial holding companies, the executive body must be responsible for;
- Implementing the strategies and policies approved by the governing body,
- Implementing appropriate internal control policies,
- Develop processes for identifying, measuring, monitoring and controlling the risks incurred by the reporting institution,
- Maintain an organizational structure that clearly assigns reporting relationships, authority and responsibility etc.
The design and implementation of the internal control system are the responsibility of the executive body, which, to this end;
- Establishes the structure of the internal control system,
- Provides the human and material resources needed to implement the internal control system,
- Identifies all sources of internal and external risk, etc.
The executive body draws up an internal control charter, which specifies in particular;
- The constituent elements of each system and the means of implementing them (procedures, internal control tools…..),
- The rules that ensure the independence of the control systems from the operating units,
- The different levels of responsibility for control.