Achieving perfect board governance is a hot subject due to the high-profile corporate scandals. What is perfect governance? What are the best practices to accomplish it?
Good governance is built on the best practices of having clear governance policies, fostering a diverse board, and conducting regular evaluations. Together, they assist boards to address governance, risks, and compliance (GRC), and deliver the best value to all stakeholders.
Boards must clearly define the roles of the executive as well as the board. Then, they can make sure that these roles are in line. This will allow them to not be a micromanager in the daily operations of the company. The board should be focused on the bigger picture and delegate day-today management to the leadership team.
Another best practice is to promote diversity in governance in the boardroom, both on the basis of race and gender. This will ensure the board has a variety of perspectives to discuss issues, and take decisions. It is also crucial that the board stays up with the latest regulations that affect governance.
The board must also meet regularly and establish goals and objectives for the business. All decisions should be strategic. This will also make it easier to track the effectiveness and progress.
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