Old Mutual Group Case Study

To begin with, Old Mutual Group is an international group; they specialize in investment, savings, insurance and banking. It is a public company limited by shares incorporated in England and Wales. Old mutual Group was established in 1845 in South Africa; it has also been listed on FTSE100 and has more than 200 billion assets under management with over 16 million customers. Old mutual Group was founded by John Fairbairn in 1845 as a mutual insurance company.

According to Old Mutual Plc Annual Report (2013), there are variations of risk management process through the company that inform and support the group’s risk strategy and risk appetite setting process. These methods add up to give the group a rounded risk view, with the individual components

With good governance, they can provide assurance to customers, shareholders and regulators that the company’s businesses are being appropriately managed and controlled, and to ensure that the directors lead the company in the best interest of the stakeholders. Without doing this, principle agent problem might occur. They have a sufficient risk committee controlled by non–executives that are able to challenge decisions. The company has an Annual general meeting, which gives their shareholders the opportunity to submit questions and concerns that would be dealt with at the meeting beforehand. They also ensure that external prospects about the governance of the company remain satisfied in an efficient and proper manner in the long-term interests of shareholders and others. Old Mutual Group’s operating model is based on a strategic model and its objectives include taking into account of its regulatory requirement that boards of regulated entities keep proper controls over the matters of their respective businesses. This would require a degree of flexibility in the way the company adapts governance practices. The Board must see better governance as a way to improve their performance not just a compliance exercise. The company is in line with adopting regulations, for that to be effective, it needs to be implemented in a manner that fits the culture and organisation of the Group. The Group also aim to set out a clear and all-inclusive corporate governance framework with proper procedures, systems and controls, enabling the satisfactory discharge of the duties and obligations of regulated firms, directors and employees within the company. Currently, Old Mutual Board committee includes twelve members, two of who are executives and 10 of whom are non-executives including the chairman. Various changes have been made to the board