The board and the executive director both have several responsibilities, such as recruiting, supervising, evaluating, leading the organization, policy based governance system, and to protect the organizations assets. Ensuring that both parties are implementing their job, could benefit the organization in many ways. For example, the board is responsible for hiring the general manager. Their job is to hire the best qualified CEO, and as a result the manager will ensure that the organizations mission will be fulfilled. Board members/ executive directors use the internal control system to control an organization. The control system has “cues” that are used to notify the staff about the safe guarding of assets and accurate financial reporting. The goal of internal controls is to serve as checks and balances on staff or outside vendors to reduce risk of misappropriation of funds and assets Kennelly,2012). The board and CEO/executive use internal cues to address oversight by state and federal regulators, managing financial risk, management of finances and fiduciary oversight, and communicating financial …show more content…
The board and directors handle regulators by making sure that the organization has written policy and procedure manuals. The manual helps keep the organization in control so that the regulators can properly assess the organizations. There are steps that the board takes when identifying the financial risk, which are analyzing the risks, reduce and controlling the risks, and giving assurance (Brown, 2010). When analyzing the risk, management must consider likelihood of the risk happening, as well as the impact on the organization if it was to happen. The board will then work with staff to define measures that can be taken to avoid the risks. Assurance is making sure that the risks has been identified, assessed and