Based on the results of the work aimed at compliance with legislation, concluded agreements and policy objectives, the management of an organization will account for the effective operation of control and security measures.
Why is accountability important?
The legal basis for this duty of accountability can be found in Article 2:391 paragraph 5 of the Dutch Civil Code and also in other legislation such as Article 5 paragraph 2 GDPR or the Wwft when it comes to reporting fraud.
- Changing supervisory arrangements: in more and more legislation there is talk of a result-oriented supervision arrangement instead of a risk-oriented arrangement.
- Heavy burden on control measures: a results-oriented supervision arrangement places a heavy burden on the control measures of the administrative organization and internal control aimed at, for example, detecting and recording incidents and/or data leaks.
- Transparency: it is important that the organization informs society about the increased risk of non-compliance with legislation. With such a justification, society can prepare itself by taking compensatory control measures.
- Accountability as part of the management report: the external auditor charged with auditing or compiling the annual accounts will, for example, assess the incidents and data leaks for signs of fraud (non-compliance) and can perform a marginal assessment of the management report.
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