Governance, Risk management, Compliances and Ethics | CS Professional subject wise tips
To clear the CS Professional Programme, one has to successfully qualify all the nine papers that form the syllabus. The nine papers are divided into three modules of three papers each. Governance, Risk management, Compliances and Ethics is one of the papers belonging to the First module. In this article, we will be discussing study tips that would help a CS aspirant to prepare for this paper.
OVERVIEW OF THE SUBJECT
The paper Governance, Risk management, Compliances and Ethics has been introduced to provide knowledge on the global development of Governance, Risk management, Compliances and Ethics and sustainability aspects and best governance practices followed worldwide. The paper has itself been segregated into four parts which have been discussed below :
- Part I: Governance (weightage 50 marks)
- Part II: Risk Management ( weightage 20 marks)
- Part III: Compliances (weightage 20 marks)
- Part IV: Ethics and sustainability ( weightage 10 marks)
RELEVANCE OF THIS SUBJECT FOR THE PROFESSION:
In the modern business era, the business environment is never static rather it is more dynamic than ever. Hence, the need for Corporate Governance has also increased over a period of years. Corporate Governance has emerged as an important practice to increase accountability and discipline thereby focusing on long term sustainability of the business. The corporate world looks upon Company Secretaries to provide guidance and direction to achieve world-class corporate governance. Therefore this subject would in a way develop the skills of an aspirant so that they could come out to be better Governance Professionals.
OBJECTIVE OF ICSI BEHIND INTRODUCING THIS SUBJECT :
- Part I: To develop skills of high order so as to provide knowledge and insight into the corporate governance framework, best governance practices.
- Part II: To develop skills of high order so as to provide thorough knowledge and insight into a variety of risks faced by the business.
- Part III: To develop the ability to devise and implement an adequate and effective system to ensure compliance of applicable laws.
- Part IV: To acquire knowledge of ethics in business and framework for corporate sustainability reporting.
STUDY TIPS FOR THE PAPER:
Governance, Risk management, Compliances and Ethics is such a subject that cannot be prepared until one has a proper understanding of the concepts and principles discussed in the study material published by ICSI. However, to ease things up, some of the Do’s and Don’ts in relation to studying the said subject is covered under:
- Do focus primarily on understanding the concepts and principles.
- Do develop the art of reading, interpreting and understanding the concepts discussed in the study material.
- Do revise the topics regularly. One must not procrastinate revising, especially for this subject.
- Do make sure enough written practice is done.
- Do make sure to study in the alignment of the topics covered in the study material published by ICSI.
- Do set up small targets while preparing for the subject and make sure to achieve them on a regular basis.
- Don’t resort to mugging up topics. This is not going to help.
- Don’t depend too much on the notes provided by private tutors, refer the institute’s material.
- Don’t resort to selective study. One must surely analyze the important topics that require more of the attention, but one must also cover the entire syllabus.
- Don’t forget to practice the “Self-test Questions” provided at the end of each chapter in the institute’s study material.
HOW TO STUDY PART I OF THE PAPER:
Part I deals with Governance and has a weightage of 50 marks in the paper. It contains a total of 11 chapters. One must know that most of the topics covered in this part have already been covered under the Executive Programme (for e.g. Topics such as Board Committee, Board Effectiveness, Vigil Mechanism etc.) therefore if studied properly it could turn out to be very scoring. Other topics such as Corporate Policies and Disclosures, Corporate governance forums, Governance and Compliance Risk etc. should be studied well. Continuous coverage of the syllabus coupled with a disciplined approach is suggested.
HOW TO STUDY PART II & PART III OF THE PAPER:
- Part II of the paper covers the topic of Risk Management. The marks weightage is 20 marks. It contains only one chapter. When read properly, this chapter turns out to be very scoring. The basic concepts of Risk Management were already covered under the Foundation Programme and therefore this chapter would not be something new for the students. This chapter should be given priority as it has around 24 pages in it and the marks allocated is 20 marks, which implies that each and every topic from this chapter is important and cannot be ignored.
- Part III emphasizes on the topic of Compliance Management & carries 20 marks. It contains 3 chapters out of which majority portions of Chapter 14 of the institute’s study material and some portions of Chapter 15 had already been dealt with under the executive programme. This leaves us with a small portion in Part III which can be covered easily with proper reading and written practice.
HOW TO STUDY PART IV OF THE PAPER:
Part IV of the paper deals with Ethics and Sustainability and carries a weightage of 10 marks. The concept of Business ethics had already been covered under the Foundation Programme. One must study part IV only after completing the previous three parts the rationale behind it is that there are three chapters in this part and has a weightage of only 10 marks, so too much time would be invested at the beginning of the preparatory process which is not advisable.
It is always better to complete the previous three parts and then moves onto this part. This does not mean that one is free to skip this part. To clear the professional programme one shall never skip the syllabus. Chapter 16 titled as Ethics and Business in the institute’s study material and the majority of Chapter 17 had already been covered under the Foundation and Executive programme respectively.
KEY POINTS TO REMEMBER:
- This being a completely theoretical paper, demands written practice and disciplined learning.
- Never resort to selective study
- Set small targets and achieve them continuously over a period of time rather than covering huge portions in a hurry.
- Do not mug up. Focus on the Quality of your preparation and not the quantity.
- Do not depend solely on your private tutor, refer the Study material published by ICSI.
- Surely solve the past term papers and practice questions to analyze the important topics that require special attention.
- Begin from part one and then proceed chronologically. Part IV shall be dealt with at last when one has prepared for all the three previous parts properly.
- Study for at least two hours a day, three days a week. Keep one day for learning and revising the topics.
- When studied with discipline, one will realize that this subject is very scoring in comparison to other subjects in the syllabus.
You can watch a few demo lectures by SuperProfs for CS and see if you would want to consider subscribing to our video series for a better shot at clearing the CS examination.