GHANA Law and Practice Contributed by: Victoria Bright and Justice Oteng, Addison Bright Sloane
6.2 Risk Management and Internal Controls Geopolitical Risks The impact of geopolitics is one of the key perfor - mance indicators that can significantly and directly affect global and regional economic stability, invest - ment safety, and supply chain reliability. Geopolitical risks such as wars, terrorist acts and tensions between nations can generate uncertainty that can thwart eco - nomic growth, increase inflationary pressures and cause significant volatility in financial markets. As a result, various countries over the world hitherto have engaged in strategic regional co-operation and trade deals, alliances and advanced technology in governance to avert the risks associated with geo - politics. In Ghana, geopolitical risks are progressively overseen and managed by the regulators to enable economic stability, and to control prices of goods and services and market volatility. • Securities and Exchange Commission (SEC) – regulates the capital market to ensure security and stability in response to global risks. • Bank of Ghana – regulates and oversee risks to financial stability, monitors impacts of capital flows, inflation and foreign reserves. • Financial Intelligence Centre (FIC) – conducts National Risk Assessments to manage risks related to money laundering and terrorist financing, which can be amplified by geopolitical tensions. • Minerals Income and Investment Fund (MIIF) – has identified geopolitical risk as a key force shaping Ghana’s external sector and markets. It monitors unresolved conflicts and shifting trade dynamics that influence gold and energy prices. Geopolitical risks are of major concern worldwide and, considering the associated impacts, it is imperative that they are overseen by the full board of directors and specialised risk committees to ensure that strat - egy aligns with global volatility. The risks are managed by integrating geostrategic threats into risk manage - ment frameworks. Ultimate responsibility lies on the entire board, often supported by dedicated committees (such as risk,
• mandatory rotation or tenure, intended to reduce familiarity risks; and • clarification of auditor’s legal duties. Appointment processes are enshrined in the Compa - nies Act, which defines the legal duties, powers, rights and appointment processes for auditors in Ghana. The SEC publishes guidelines for the appointment of auditors of public companies. As aforementioned, the appointment of an auditor is made by ordinary resolu - tion at the AGM. Mandatory rotation of the auditor is required and backed by the legal framework. An auditor can only hold office for a maximum of six years and is eligible for reappointment only after a cooling-off period of not less than six years. The professional qualified auditor must be a mem - ber of the Institute of Chartered Accountants, Ghana (ICAG) or another recognised professional body, and hold a valid practice certificate. The auditor cannot be an employee or officer of the company, or an associ - ated company. Auditors must be independent of the company, complying with all the various auditing, accounting and financial reporting standards. The framework provides guidelines for conflict of inter - est. It prohibits an auditor of a company from having personal relationships or financial involvement with a client or the company (eg, shareholding, among oth - ers). The objective is to ensure the personal judge - ment of the auditor is not impaired. The duties and rights of auditors are enshrined in the Companies Act. Auditors must report to the members (shareholders) on the financial statements and state whether they show a true and fair view. Auditors have a statutory right of access at all times to the com - pany’s books, accounts and vouchers. Auditors have the right to require information and explanations from company officers for the purpose of the audit. They also have the right to receive notices of and attend any general meeting.
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