The securitised debt obligations that gave rise to the subprime crisis provides a perfect argument for process; process provides the transparency that enables effective governance across a range of issues that are increasingly pressuring senior management across all sectors.
Governance is a Process, not a role. Bolting bits of compliance onto the organisation in an unstructured and un-coordinated manner will increase the fog factor; there has to be a unified approach to all aspects of governance. Corporate Integrity is the means, not just the end result Process-based Governance will enable “compliance when no-one is looking”.
As far as company directors are concerned the financial aspects of compliance are not the only issues looming on their horizons. Corporate governance in its broader aspects places responsibilities on boards and individual directors that are transforming the liabilities and accountabilities that weigh on them.
New and weighty responsibilities for the governance of risk, compliance with laws, rules, codes & standards sit against a background of rising awareness of the requirements of corporate citizenship and ethical leadership. The pressures involved in governing and reconciling diverse stakeholder relationships, meeting increasing internal audit requirements and rising standards in respect of integrated reporting & disclosure are yet more factors in play. As is the governance of information technology in terms of security, accessibility and data protection.
The Governance Process has inputs, outputs, objectives, roles, rules, responsibilities, standards - just like any other process. The Governance Process should support organisational strategy and compliance obligations, not just abstract KPI’s
If you are interested in our approach to corporate integrity have a look at the following, then get in touch.
http://www.bptg.org.za/corporate_integrity_initiative.htm
