Governance

Governance is the glue that connects the organization’s ownership to its management.  It’s a structure with the sole purpose of monitoring that the organization’s risk and resources are handled in a way that will optimize the utility (i.e. benefit) to owners and other stakeholders such as the environment or the public at-large.  To be effective, while the governance structures should involve management to some extent, the pure governance function itself must be independent of management.

Examples:

• Board Advisory
• Whistleblowing Programs
• Risk Management
• Investment Intermediation

To convey it simply, governance enables decisions that impact the organization’s productivity & strategy, two important categories for which you can read additional relevant information below:

• Productivity
• Strategy