Cap. 10:31 Punuc ENTITIES CoRPORATE GovER.t'lANCE No. 4/2018 DrREcroR DEVELOPME"<! Principle 182. The induction and ongoing training and development of directors should be conducted through fonnal and adequately resourced processes for them to deliver the desired results. Recommendations 183. The formal induction programme should(a) be established to familiarize incoming directors with the company's operations, its business environment and sustainability issues relevant to its business; (b) introduce the directors to members of senior management and apprise them of their respective duties and responsibilities; meet the specific needs of the company and individual directors; (c) (d) enable new directors to make a maximum contribution as quickly as possible. 184. Ongoing director development should be encouraged in the same manner that continuing professional development is encouraged for other professionals. 185. Directors should receive regular briefings on matters relevant to the business of the company, changes and risks, laws applicable to the business of the company, accounting standards, policies and the environment in which the company operates. 186. Incompetent or unsuitable directors should be removed through a process led by the chairperson. CHAPTER4 GovER.t'<ANCE OF RisK Preamble 187. Businesses leaders should understand risk and how it can be measured, eliminated or mitigated. Risk management systems on an enterprise-wide basis should be independently assured for effectiveness in goal delivery. RISK MANAGEMENT Principles 188. The Board should ensure that principal risks are timeously identified or detected and managed in order to mitigate or reduce damages and losses to the company. 189. The Board should establish an efficient and effective system for the day to day supervision of the company's financial and business operations. 190. The Board must ensure that- (a) 1isk assessments are performed on a continuous basis; (b) a framework methodology is established to increase the likelihood of anticipating unpredictable 1isks; (c) management considers and implements appropriate risk responses; (d) risk monitoring is carried out continuously by the risk management c01mnittee and management. 191. The company's risk management policy and plan should cover- (a) how risks are timeously identified and evaluated including methods and procedures on how management responds to them; 133