Ongoing Governance Process

Governance is the process of managing business processes. In this regard, governance has a broader discipline than auditing, legal & compliance.

Governance refers to the rules and practices by which organizations, including companies and societies, are governed and administered. It encompasses the systems and processes in place to ensure accountability, fairness, and transparency in decision-making and operations. 

Governance is an ongoing process; the governance process is essentially the system that oversees how processes are designed, implemented, and monitored continuously. 

Key Aspects of Governance

-Membership Rights: Governance structures determine who has membership rights, which can be limited to a single class, such as shareholders, or extended to multiple stakeholders, including employees, customers, and local communities.

-Content of Rights: The rights provided to members vary, ranging from consultation on corporate policy to decision-making power alongside managers. Rights also extend to the distribution of surplus generated by the organization, with for-profit firms distributing dividends to members.

-Modes of Representation: Members' interests can be represented directly through voting for representatives, indirectly through organizations like consumer councils, or through proxy representation by a self-appointed board.

The Evolution of Governance: It has evolved, particularly since the late 20th century, in response to neoliberal reforms of the public sector. These reforms have led to a shift from traditional bureaucratic models to more entrepreneurial systems based on competition and markets. This shift involves a move away from direct service delivery by the state towards policy decisions and coordination.

Governance as System: In contemporary social science, governance is often viewed as a complex and fragmented pattern of rule composed of multiplying networks. These networks involve diverse organizations from the public, private, and voluntary sectors, which are interdependent and require the exchange of resources to achieve their goals. This interdependence necessitates that the GRC organizations steer this evolutionary progress through diplomacy and management techniques rather than direct commands.

Governance is the process of managing business processes. In this regard, governance has a broader discipline than auditing, legal & compliance. Governance includes a process or methodology to manage the business process. Governance also involves Ontology (taxonomy, meta-model, etc) to clarify & manage knowledge or risk. 

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