For every corporation which should work and be effective and efficient, you need good governance; and the desire for more innovation will make governance issues more complex.
In reality, what are the biggest problems for today’s governance, and how to improve its effectiveness and maturity?
Governance and risk management go hand-in-hand. They really cannot exist exclusive of each other: An important aspect of identifying and managing risks is to ensure that risks are identified, minimized, and controlled within acceptable "risk-appetite. The top business leaders need to contemplate: How robust was the organization's risk assurance system, all the way up to the management board? How could that business system miss something that has had a widespread impact? Was senior management too easily assured? Who was responsible for feeding unreliable information up the organizational food chain? What checks were there to test the reliability of such information? Etc. By clarifying those concerns, governance and risk management can mutually reinforce with each other to improve organization agility and resilience.
As long as risks have been identified and agreed with stakeholders as per business needs, then you can take risk models that effectively predict, optimize, and consider a continual and sustainable approach with multi-faceted perspectives, and the specific threshold for justifying opportunities and business outcomes timely. The holistic risk management should provide the strategic light and tactical angles to understand critical issues, in support of pending local, national and global efforts and mission/challenges of changing working environments, economics, regulations, and globalization.
Governance and risk management must be integrated and aligned with the business culture and processes to improve the overall GRC maturity: Risk governance as the guiding force behind risk management, ensures boundaries are appropriately set and adhered to achieve risk management effectiveness: In most of the organizations, there are clear processes for the interaction between management and the board. However, with "VUCA" reality, in some circumstances, the line between management and governance is blurred. To optimize risk governance effectiveness, the corporate board and management need to work more collaboratively to reinvent governance models, re-imagining management discipline, and rejuvenating their relationships to build high performance organizations.
In practice, take a consideration of your current governance maturity - where you are today and how far/fast you might change things, coupled with a good definition of roles/responsibilities wrapped around governance processes. An outside-in governance is a set of mixed flavor of event driven and goal driven processes to manage dynamic business processes, build an outside-in people-centric organization by doing better in well-embedding risk management mechanisms into key business processes seamlessly and enforcing GRC practices.
Governance definitely creates an impact on business performance: Business performance can be affected by numerous factors of which governance is one of them. The organizations with greater governance discipline usually result in significantly better performance than their competitors. The positive impacts come from corporate governance good practices on business performance. Reduce the performance drag of top-heavy management structures without giving anything up in terms of focus, effectiveness, and efficiency. The performance based governance disciplines need to connect interdisciplinary management dots with comprehensive business context, to reinvent performance management practices from micromanagement to macro-management, and from monitor based to a motivational style performance management.
Performance management coherence is achieved via cross-functional collaboration to achieve high performance business results. Look for the linkage between operation management and governance rather than compliance only, improve the quality of performance through governance improvement. Strong governance practices ensure seamless alignment and decision coherence across the organizational hierarchy, reinvent organizational restructure, and ensure the business as a whole is superior to the sum of pieces.
For every corporation which should work and be effective and efficient, you need good governance; and the desire for more innovation will make governance issues more complex. It presents a very real risk that governance as a discipline will begin to lose focus of its prime purpose if it does not address strategically important emerging issues. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically.
Governance and risk management go hand-in-hand. They really cannot exist exclusive of each other: An important aspect of identifying and managing risks is to ensure that risks are identified, minimized, and controlled within acceptable "risk-appetite. The top business leaders need to contemplate: How robust was the organization's risk assurance system, all the way up to the management board? How could that business system miss something that has had a widespread impact? Was senior management too easily assured? Who was responsible for feeding unreliable information up the organizational food chain? What checks were there to test the reliability of such information? Etc. By clarifying those concerns, governance and risk management can mutually reinforce with each other to improve organization agility and resilience.
As long as risks have been identified and agreed with stakeholders as per business needs, then you can take risk models that effectively predict, optimize, and consider a continual and sustainable approach with multi-faceted perspectives, and the specific threshold for justifying opportunities and business outcomes timely. The holistic risk management should provide the strategic light and tactical angles to understand critical issues, in support of pending local, national and global efforts and mission/challenges of changing working environments, economics, regulations, and globalization.
In practice, take a consideration of your current governance maturity - where you are today and how far/fast you might change things, coupled with a good definition of roles/responsibilities wrapped around governance processes. An outside-in governance is a set of mixed flavor of event driven and goal driven processes to manage dynamic business processes, build an outside-in people-centric organization by doing better in well-embedding risk management mechanisms into key business processes seamlessly and enforcing GRC practices.
Performance management coherence is achieved via cross-functional collaboration to achieve high performance business results. Look for the linkage between operation management and governance rather than compliance only, improve the quality of performance through governance improvement. Strong governance practices ensure seamless alignment and decision coherence across the organizational hierarchy, reinvent organizational restructure, and ensure the business as a whole is superior to the sum of pieces.
For every corporation which should work and be effective and efficient, you need good governance; and the desire for more innovation will make governance issues more complex. It presents a very real risk that governance as a discipline will begin to lose focus of its prime purpose if it does not address strategically important emerging issues. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically.
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