The Australia legal system is likely to take a stance on the role of Non-Executive Directors in the oversight and assurance of corporate performance.

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The Australia legal system is likely to take a stance on the role of Non-Executive Directors in the oversight and assurance of corporate performance.

The Star Hotels case is not widely known outside Australia, but its causing a stir. The case centres around allegations the company, and its former executives, breached their obligations to manage the dangers of money laundering and other criminal activity at their casinos. Allegations include failure to adequately manage risks related to China UnionPay debit cards, providing misleading information to National Australia Bank, and failing to implement sufficient controls to prevent money laundering.

As the presiding Judge Justice Michael Lee made a direct comment in the closing stages of the blockbuster ASIC v Star Entertainment case last week.

“People just can’t keep on saying, ‘Oh, well, it’s all too difficult for us to read the material that’s presented to the board’.”

In short, don’t take the money and then complain about the job.

There’s an expectation in the media that the judge will hold all directors accountable for the running of the company and could face civil and criminal penalties, in a case that highlights the role of boards in corporate governance.

With the ASIC also focusing on cyber risk management and having set case precedence in board oversight of cyber risk. One awaits their strategy on the oversight of cyber in the Australian board room Faisal Khan.

@Thaddeus Dziekanowski Brian D. McCarthy Bryan Foss Tom McLeod

Veritas GRC The Star Entertainment Group ASIC

#cybersecurity #cyberriskmanagement #cyberregulation #corporategovernance

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