The overall objective for governance over the Bank’s subsidiaries is to
implement working principles, promoting active communication, better governance
and operational practices, collaboration, and the highest standards for
controls, aiming to achieve synergies and optimization of efforts within the
The Board of Burgan Bank shall be responsible for the existence of
sufficient governance standards for the Group. The Bank Board shall ensure that
there exist suitable policies and mechanisms of governance for the Group
relating to its entities structure, activities and risks.
The Bank’s Board and the Executive Management shall remain well
informed and aware of the Bank’s operational structure and the relevant risks,
the structure and organization of the Group, the goals and inter-relationships
between entities and of entities with the Bank.
The Board shall remain aware and informed about the material risks and
cases which might affect the Bank as a whole and its subsidiary companies.
Sufficient oversight shall be exercised over subsidiary banks by the Bank while
considering the legal independence of governance responsibilities of the Board
members of subsidiary companies.
In this regard, the Burgan Bank's Board shall:
governance structure that contributes to effective supervision of subsidiary
companies which takes into consideration the nature, size, and complexity of the
different risks facing the Group and its subsidiary companies.
governance structure periodically to ensure it remains suitable for cases of
growth, increased complexity and geographic expansion.
Approve a Subsidiary
Governance policy on the Group level for subsidiary companies, which shall
include adherence to all governance requirements.