As a Bahrain-based bank, Unicorn is subject to the corporate governance standards of the CBB. In an effort to bring the corporate governance of Bahraini banks more into line with international corporate governance standards, the CBB has adopted a series of new corporate governance rules in recent years to foster a culture of proactive boards of directors that are accountable and responsible for the affairs and performance of their banks. Unicorn has implemented the new CBB rules, including the requirement that the entire Board of Directors, rather than a sub-committee, is responsible for ensuring that the systems and controls framework of the Bank is appropriate for the Bank’s business and associated risks. In assessing the systems and controls framework, the Board is required to demonstrate that the Bank’s operations:
• are measured, monitored and controlled by appropriate, effective and prudent risk management systems commensurate with the scope of the Bank’s activities; and
• are supported by an appropriate control environment.
The Board of Directors
The prime responsibility of the Board of Directors (the Board) is to provide effective governance over the Bank’s affairs as a fiduciary duty towards its shareholders, customers, employees and other stakeholders. In 2006, Unicorn adopted a new Corporate Governance Charter to ensure that the Board follows the highest standards of ethical conduct, reports results with accuracy, transparency and integrity, maintaining full compliance with all the laws, rules and regulations that govern the Bank’s business.
The Board is comprised of members from diverse backgrounds, who combine a broad spectrum of experience and expertise with a reputation for integrity and professionalism.
The Board has the responsibility for providing the strategic direction to the Bank. The Board continually assesses Unicorn’s objectives, strategies and plans to ensure that they are relevant and will facilitate the desired results. As part of this process, the Board reviews the Bank’s business plans, approves financial budgets, sets performance objectives, oversees major capital expenditures, approves major investment proposals, acquisitions and divestitures and approves the Bank’s risk profile and risk appetite.