Aviva 2014 Annual Report Download - page 66

Aviva plc Annual report and accounts 2014
Chairman’s governance letter
62
This ensures that your investment and the
assets of the Company are protected. As a
Board we take these governance
responsibilities seriously and they are
particularly important when significant or
transformational transactions are being
considered.
This is clearly the case in respect of the
proposed acquisition of Friends Life. Given
the materiality of the transaction, the Board
as a whole carefully deliberated the merits
of the transaction, ensured that a robust
due diligence process was followed and fully
considered the risks, mitigations and
opportunities presented by the transaction.
If the proposed acquisition completes
successfully the Board will oversee the
integration to ensure that robust systems of
internal control and risk management are
implemented throughout the enlarged
Group to support its long-term success. I
believe management has a clear plan to
achieve the strategy agreed by the Board
and this will continue to evolve as we
integrate Friends Life if the proposed
acquisition completes.
Key activities during 2014
—
Board
Reflecting on the results of the Board and
committees’ effectiveness evaluation
conducted at the end of 2013, the Board
considered the balance of skills, knowledge
and experience on the Board and its
committees. The committees were all
considered effective, however the Board
agreed there was merit in making some
changes to the membership of some of the
committees.
Governance Committee
We further refined the Governance
Committee’s remit during the year to
include oversight responsibility for conduct
risk, in particular in relation to those risks
that may impact customer outcomes and
have a potential reputational impact. This
has been a key focus of the committee
during the year with a push for consistent
management information on conduct risk.
The committee also became responsible for
talent management and development
programmes, and during the year
implemented initiatives to ensure robust
succession plans are in place and a
sustainable future workforce is created.
Audit Committee
The Audit Committee continued to monitor
the internal control environment and the
nine key control topics identified by
management (see the Audit Committee’s
report for further details). In particular, new
protocols are being developed to improve
oversight of the Group’s joint ventures. The
committee is also overseeing the rollout of
the Integrated Assurance Framework (IAF)
across the Group. In time this will provide a
Dear
shareholder
Your Board firmly believes that a sound
governance framework is essential in
supporting management in delivering
the Group’s strategy to drive business
success
Our governance
responsibilities … are
particularly important
when significant
transactions are being
considered
—
John McFarlane,
Chairman
Our governance
responsibilities are
particularly important
when signicant
transactions are being
considered
—
John McFarlane
Chairman
62 | Aviva plc Annual report and accounts 2014