.
.
SIMON FRASER UNIVERSITY
?
S.06-18
Senate Committee on University Priorities
Memorandum
?
/2
TO:
Senate ?
FROM: ?
William Krane
Acting Chair, SCUP
Acting VP, Academic
RE:
CIBC Centre for Corporate Governance DATE:
?
January 19, 2006
and Risk Management (SCUP 06-03)
At its January 11, 2006 meeting SCUP reviewed and approved the proposal for the
creation of the CIBC Centre for Corporate Governance and Risk Management. This
Centre will be in the Faculty of Business Administration, and will be a partnership
between the Canadian Imperial Bank of Commerce, The Canadian Institute of
Chartered Accountants, the Institute of Chartered Accountants of British Columbia, and
the Faculty of Business Administration.
Motion
That Senate approve and recommend to the Board of Governors the
creation of the CIBC Centre for Corporate Governance and Risk
Management
Rationale
The proposed Centre will promote research and knowledge dissemination as to how
organizations create effective strategies that fully account for the various risks attached
to the choices organizations face.
The proposal does not include a plan for the creation of an endowment. The donors
wish the funding to be used as seed money to establish a centre, not to establish an
endowment. The funding is expected to last 10 years.
Further details about the objectives of the Centre are provided in the attached
documentation.
end.
c: E. Love
is
SCUP O6-03
• ?
SIMON FRASER UNIVERSITY
MEMORANDUM
OFFICE OF VICE-PRESIDENT, RESEARCH
TO: Sarah Dench, Secretary ?
FROM: B. Mario Pinto
Senate Committee on University
?
Vice-President, Research
Planning (SCUP)
RE:
CIBC Centre
for
Corporate ?
DATE: December 22, 2005
Governance and Risk Management
Attached is a proposal from Dr. Ernie Love, Dean, Faculty of Business
Administration for the establishment of the CIBC Centre for Corporate Governance and
Risk Management as a Schedule A Centre.
The Governing Committee for Centres and Institutes recommends that the
Centre be granted approval by SCUP. Once approved by SCUP, the proposal is to be
forwarded to Senate, followed by submission to the Board of Governors.
0
?
Governing Committee:
q
Dr.ohn H.Waterhouse
-President, Academic and Provost
Dr. B. Mario Pinto
Vice-President, Research
Attachment
C: ?
Dr. Ernie Love, Dean, Faculty of Business Administration
0
S
SIMON FRASER UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
?
BURNABY, BRITISH COLUMBIA
OFFICE OF THE DEAN
?
CANADA V5A ISo
Telephone: (604) 291-4183
Fax: (604) 291-5833
October
5,
2005
r. Mario Pinto
'ice President Research
imon Fraser University
urnaby, BC
5A 1S6
Mario,
entre
ttached
within
please
the
find
Faculty
a document
of Business
proposing
of Administration.
the establishment
This
of
Centre
a Schedule
will be
A
known
Researchas
?
5
e CIBC Centre of Corporate Governance and Risk Management. It is funded by the
anadian Imperial Bank of Commerce (CIBC with $700,000 over 5 years), the Canadian
stitute of Chartered Accountants (CICA with S 150,000 over
5
years) and the Institute
Chartered Accountants of British Columbia (ICABC with $150,000 over
5
years).
Vith your approval, I would appreciate that this be put on the January 2006 SCUP
genda.
hank you,
rnie Love
'ean, Faculty of Business Administration
imon Fraser University
Dr. John Waterhouse, VP Academic
0
Constitution for the Proposed
Centre for Corporate Governance and Risk Management
?
(in accordance with University Policy R40.01)
Faculty of Business Administration, Simon Fraser University
?
October 5, 2005*
(a) Statement of Purpose
Mission
The purpose of the Centre is to promote research and knowledge dissemination as to how
organizations, and particularly Boards of Directors, create effective strategies that fully
account for the various risks attached to the choices they face. The Centre will focus on
evaluating and measuring strategic risks that emerge from social, ethical, environmental
and global forces, and how organizations can create governance structures to minimize
0 ?
these risks.
Funded by the CIBC Bank, the Canadian Institute of Chartered Accountants (CICA) and
the Institute of Chartered Accountants of BC (ICABC), the Centre for Corporate
Governance and Risk Management will conduct research into three broad yet highly
interrelated areas:
1.
Board of directors and strategic analysis within the organization
2.
Corporate governance and the management of risk
3.
Ethical, social and global dimensions of corporate governance
The Centre will marshal the academic resources for undertaking such advanced research
and analyses. These academic resources would include researchers affiliated with the
Centre, visiting research fellows, and an affiliated PhD stream, as well as inter-
institutional research linkages. The Centre will proactively identify emerging, relevant
issues ?
and make recommendations ?
that ?
ensure
?
Canadian corporate
?
governance
and risk
management practices are among the best in the world.
The Centre will foster dialogue, exchange, and innovation as well as traditional
dissemination activities in the broad range of issues associated with corporate governance
and risk management. These activities will include:
publication and dissemination of research in both academic and practitioner
journals
hosting and organization of conferences or public forums on subjects of
special topical interest
• ?
support of PhD students interested in corporate governance and risk
• ?
hosting workshops to promote the activities and findings of the Centre to
academic and business audiences
• ?
preparation and distribution of educational material for use by universities and
professional associations
•
?
regular offerings of professional development programs.
Over the long term, the Centre will champion a multi-disciplinary approach that supports
and promotes specialized and integrative research as well as advanced educational
activities. Scholars and practitioners from Canada and abroad, in fields such as strategic
management, accounting, finance, actuarial science, and legal frameworks and business
ethics, will have an opportunity to collaborate at and through the Centre. One of the
Centre's functions will be to fund, as well as attract funding for, specific research projects
of interest to the Centre and its board.
Vision
At the heart of the vision for the Centre for Corporate Governance and Risk Management
is the belief that good governance means an organization-wide view of risk management.
The knowledge and abilities required to manage risk must be brought to the highest levels
of corporate governance: to the boards of directors who provide external governance for
the firm; and to senior managers who formulate and execute the board-approved strategic
directions for the firm.
Rationale
Corporations and other organizations are now coming to understand that traditional
definitions and approaches to risk and risk management have changed. In particular, there
is widespread recognition that risk must be considered in broad, strategic rather than in
narrow, financial terms. Rapidly shifting geo-political contexts, market globalization and
other external factors are leaving businesses increasingly vulnerable to earnings
disruptions. At the same time, the increased importance of information technology,
intellectual property, alliances and human capital are creating significant risks when there
is malfunction or malfeasance. Firms risk a significant loss of their reputational capital
when their products, suppliers or employees are seen to violate quality standards or
ethical norms.
As a result, firms are increasingly exposed to new and complex sources of risk that
cannot always be managed through traditional instruments like insurance or hedging. A
recent survey of Fortune 1000 executives by the National Association of Corporate
Treasurers found that most believed they were vulnerable to significant earnings
disruptions, but few believed they had put in place the appropriate risk management
measures. Thus; as external and internal business environments continually change,
corporate governance and risk management practices must be able to adjust appropriately
and in timely ways to changing requirements and conditions.
(b) Appointment of the Director
The Dean of the Faculty of Business Administration will appoint a faculty member from
the Faculty of Business Administration to serve as the Academic Director of the Centre
for a two-year (renewable) term.
0
(c) Applicable Schedule
The Centre will be guided by SFU Policy 40.01
for
Schedule A Centres and Institutes.
d)
Obligation of the Centre
activities conducted within the Centre will conform to University policies.
e)
Funding
of the research and outreach activities of the Centre is provided by the CIBC
ank, the Canadian Institute of Chartered Accountants (CICA) and the Institute of
Accountants of BC (ICABC). The Faculty of Business Administration will
provide some support to the Centre to ensure proper infrastructure is in place. The
will be housed in the Segal Graduate School of Business.
( ?
Internal Governance of the Centre
The research activities as well as the dissemination activities of the Centre will be guided
by an advisory board consisting of four members from the Faculty of Business
Administration, Simon Fraser University (including the Director), and four designates
from the funding bodies. A Chair of the Advisory Board, if different from the Academic
Director of the Centre, will recommend to the Academic Director the plan of activities
envisioned for each year. The Academic Director will ensure that any such recommended
activities are consistent with University policies.
An annual report on the Centre's activities along with financial statements will be
prepared by the Academic Director and submitted to the Dean by April 15
th
of each year.
The Dean will report annually to the Centre's Governing Committee, in accordance with
Policy R 40.01.
.
4
0 ?
The proposed members of the Centre are:
Danny Shapiro, Business Policy and Comparative Analysis
Mark Wexler, Business Policy and Applied Ethics
Andrew von Nordenflycht, Business Policy
Geoff Poitras, Finance
Peter Klein, Finance
Amir Rubin, Finance
Craig Emby, Accounting
Irene Gordon, Accounting
Carolyn Egri, Organizational Systems and Corporate Social Responsibility
Dave Thomas, International Business and Cross-Cultural Analysis
Leyland Pitt, Marketing
Plus four members from the funding bodies (likely two from CIBC, one from CICA and
one from ICABC).
r
* ?
Minor editorial revisions incorporated January
25,
2006
