Senior, Director & CEO (Level 7 & 8)
What the Level 7 and 8 exams test
CMI Senior, Director and CEO qualifications test board leadership, corporate governance, strategic direction, stakeholder accountability, risk oversight, culture, succession and crisis leadership.
Core rules
- Governance differs from management: the board sets direction, oversees and assures; executives manage delivery.
- UK Corporate Governance Code principles cover board leadership, division of responsibilities, composition, audit and risk, remuneration, and shareholder relations.
- Fiduciary duties require acting in the company's best interests, avoiding conflicts and exercising care and skill.
- Maintain a risk appetite statement and board assurance framework.
- Separate the chair and CEO roles; plan CEO succession.
Worked example
A board considering an acquisition must test strategic fit, due diligence, valuation, financing, risk appetite, stakeholder impact, regulatory approval, integration plan and governance approval. The CEO should not commit without board authority. The reasoning is that direction and oversight sit with the board, while execution sits with management.
Traps that cost marks
- Conflating governance with management.
- A chair acting as CEO.
- Ignoring culture and conduct.
- Treating risk as compliance only.