It is impossible to manage business without considering high standards of corporate management in the modern world.
Establishing the best standards of corporate management is essential for those countries which aim to stimulate investments in a private sector and for companies which want to bring additional capital. If the company has a strong and correct corporate management, it will be successful in this process, on the other hand, weak management will weaken the potential of the company and will cause financial problems and fraud.
Civilized world and international financial institutions recognize and support international standards which are elaborated by different financial institutions and support establishing transparent and effective capital markets and best practice of corporate management.
Nowadays, it is considered that there are 12 basic standards of healthy business financial system:
- The best practice of transparent codex for Monetary and financial politics
- The best practice of Fiscal Transparency -International Monetary Fund (IMF)
- Broadcasting standards of special/general data- International Monetary Fund (IMF)
- Effective systems of bankruptcy and guidelines and creditors rights- World BANK (WB)
- Principles of corporate management- Organization for Economic Co-operation and Development (OECD)
- International standards of registration
- International standards of audit
- The basic principles of systematically important taxation systems (Committee on Payment and Settlement Systems- CPSS) and recommendations for secure payment systems (International Organization of Securities Commissions- IOSCO).
- 40 references of financial acts special group and 9 special references of financing terrorists (FATF).
- The basic principles of banks effective supervision – The Basel Committee on Banking Supervision (BCBS)
- The aims and principles of securities regulation – The International Organization of Securities Commissions (IOSCO).
- The basic principles of insurance – The International Association of Insurance Supervisors (IAIS).
Successful implementation of international standards strengthens the internal financial system of the country. It promotes to create healthy regulations and supervisory system, it provides more transparency and establishing more effective institutions, markets and infrastructure.