Having a robust governance model and effective corporate governance framework doesn’t ensure that your business will remain successful. Also, success is measured by sustainable growth.
What happens when governance principles are neglected?
Moreover, if we look at Enron, they had one of the best corporate governance models and their governance policies were well regarded. However, the directors used dubious accounting practices to hide debt and their auditors didn’t adhere to corporate governance standards. These actions threw the US financial markets into chaos and caused a financial crisis, it also resulted in the loss of Andersen’s reign as one of the big 5 audit firms and ultimately Enron’s bankruptcy.
Ensuring governance gaps are closed
But what happens when your framework has gaps, or when you encounter government regulations or other industry hurdles that you aren’t prepared to overcome? A proactive corporate governance approach is advised to ensure your organisation embeds good governance practices that remain fit for purpose. This is achieved when your corporate governance framework, your systems and procedures are periodically reviewed for gaps. We know the importance of these periodic reviews and we can assist you with a full governance gap analysis.
These reviews should be conducted by experienced governance professionals who have a good understanding of your industry and the regulations, laws and governance framework adopted by your organisation. Part of the governance framework is your delegation of authority, the terms of reference for the board and the committees and any authority matrices.
Who needs governance training?
In fact, listed entities, large corporate groups, family businesses and SMEs all require corporate governance. Also, it can be argued that the smaller businesses need these frameworks even more. One way to enhance an organisation’s corporate governance is to provide the directors, senior executive and management team access to accredited continued professional development corporate training programs.
What is corporate governance?
Corporate Governance is the method for businesses to align the objectives of shareholders, the board of directors, senior executives and stakeholders whilst maintaining the corporate objectives, monitoring the current and emerging risks, and sustaining performance.
At Governance Gurus, we are committed to offering the best in governance training and consultation so that you can feel confident that your business is built on a framework of success, growth and sustainability.