Best business practices to promote financial stability
The economic crises in Asia, Russia and Brazil in the recent past have clearly demonstrated that both governments and business have an interest in reducing the turbulence of global financial markets. While governments continue to debate the form that the new global financial architecture should take, business is making its own contribution to improving the resistance of the world financial system to crisis.
The following best practices have been drawn up by the ICC Commission on Financial Services and Insurance to highlight the most effective techniques employed by companies to reduce their vulnerability to financial shocks. Adhering to these best practices also contributes to global financial stability. Many companies have already committed themselves to establish best practices, and have invested the resources to instruct, teach and supervise their staff so that these practices are applied throughout the company.
Although this paper on best practices is mainly addressed to firms in the financial sector, it is important to note that they are relevant for businesses independent of their sector of activity and the location of the parent company. These recommendations therefore serve as a reference for all companies.
If large numbers of firms improve their financial practices and safeguards, the global financial system will be strengthened. Companies have no need to wait for implementing legislation or regulatory authorization to put these pragmatic measures into effect.
The ICC Commission on Financial Services and Insurance is composed of international experts representing the full spectrum of the financial services sector, including providers, brokers and users of financial and insurance products.
Commission members are convinced that transparency is the key to solid company practice and corporate governance. Transparency applies to all of the following best practices.