5.1 Corporate Governance Principles

Corporate governance is the system by which companies are directed and controlled. The ACT syllabus covers “corporate governance and regulation” and “the importance of ensuring ethical behaviour” . Key principles include:

• Board Oversight: Clear separation of responsibilities between the board and management.

• Transparency: Open and honest communication with stakeholders.

• Accountability: Clear lines of responsibility and consequences for failures.

• Risk Oversight: A robust risk management framework.

The University of Birmingham module requires students to “critically explain ethics and corporate governance theories and their application” .

5.2 Ethics and Professional Standards

Treasury professionals are expected to adhere to high ethical standards. The ACT’s Ethical Code sets the minimum standard of behaviour for treasury professionals . Key principles include:

• Integrity: Serving employers honestly and avoiding conflicts of interest.

• Independence: Making professional judgments independently.

• Professional Competence: Complying with technical and professional standards.

• Confidentiality: Refraining from disclosing or using confidential information for improper purposes.

The ACT’s Certificate in Treasury includes a dedicated unit on “Technology, governance and ethics” covering these principles .

5.3 Operational Risk and Control

Treasury operations must be supported by strong internal controls to prevent operational errors, financial penalties, or loss of reputation. Key controls include segregation of duties, authorisation limits, and regular audits. The University of Birmingham module covers “operational risk and control” as a key element .