WDPG App 2.1 Leadership and responsibilities
1For successful wind-down planning, it is important that a firm’s governing body (e.g. the Board of Directors of a company or partners of a partnership) fully understand the purpose and process of wind-down planning.
The firm’s governing body is ultimately responsible for the effectiveness of wind-down planning, and so it needs to demonstrate leadership and set the strategy for the process.
Effective wind-down planning is more likely if it is prepared by a working group leading the process and reporting to the governing body via a designated representative.
Effective |
Less effective |
Senior management leads a wind-down planning project and secures the governing body’s agreement to the principles of wind-down planning. |
Finance Department works out the estimated costs of winding down the business (i.e. without considering the associated governance and operational planning elements). |