The importance of having an appropriate governance framework and the necessary processes to support the framework has never been more important.
Sound governance arrangements have enabled countries and businesses worldwide to cope, survive and for some, to thrive during the global pandemic.
Understanding some of the core ingredients needed to create a sound governance framework in order to prosper or survive is paramount. The key factors of sound governance typically include:
- Structure – this is commonly referring to the organisational and reporting structure established by the Board or those charged with governance (TCWG). It needs to be underpinned and reflect an organisation’s values. It commonly accepted that TCWG are accountable for all acts (both undertaken or omitted), and/or whether they were formally approved or implemented by TCWG. Governance applies to all size and type of organisation, and it is incumbent upon TCWG to exhibit and act with leadership, integrity and conviction at all times in upholding its values
- Oversight – without oversight and analysis, one is unable to determine if the established protocols, processes and procedures are being observed, otherwise it’s difficult to identify and implement adjustment opportunities
- Talent and culture – it’s commonly accepted that people are the most important asset of any business. It’s therefore incumbent upon TCWG to empower its people via suitably designed and fit for purpose business management processes and principles to implement the stated objectives and strategies of the business. It’s important that the framework allows for growth and development, and importantly, learning from errors made
- Resources and infrastructure – these represent the suite of tangible and intangible resources needed to enable an organisation to function.
An organisation’s risk appetite and ethics also play a critical role in framing its governance framework. It’s important to take considered and calculated risks in business while balancing the need to comply with business regulations and professional standards, while acting at all times with integrity and respect.
In times of crisis such as a pandemic, it becomes clear that TCWG observe its governance framework without fail, and ensure its decision-making framework does not waiver from its guiding values. It is also important to accept responsibilities for failings and address them in a timely manner.
We are here to help. Go to our COVID-19 Resource Centre for a collection of updates, insights and guides to help you manage your business through the pandemic.