Investcorp views corporate governance as the manner in which members of the Board of Directors, shareholders, investors, management and employees of Investcorp are organized and how they operate in practice.
Good corporate governance involves keeping business practice above reproach and thus retaining the trust and confidence of all the stakeholders who enable Investcorp to operate, thrive and prosper.
Investcorp makes large investments in mostly illiquid asset classes such as corporate and real estate investments. It places a large proportion of these investments with clients and retains a portion for its own balance sheet. These investment activities operate with above-average risk levels and have led to the development of a comprehensive risk management infrastructure and strong corporate governance over the past 30 years. Investcorp's corporate governance practices have been structured around the following three principles:
i. alignment of interests among shareholders, clients and management combined with protection of lenders' interests;
ii. transparency of reporting and actions plus proactive risk control; and
iii. collective decision-making.
Investcorp Bank's corporate governance is subject to the Central Bank of Bahrain's ('CBB') High Level Controls Module, ('Module HC') which incorporates the Corporate Governance Code of the Kingdom of Bahrain. Please see the Fiscal Year 2016 Corporate Governance Report for disclosure regarding Investcorp's compliance with CBB's Module HC.