The Board Corporate Governance Role
A board corporate governance role requires a lot of oversight, insight and foresight. As the business landscape becomes more complex and unpredictable it demands more vigilance monitoring and a well-informed decision-making process from board directors. It also requires more coordinated efforts of all employees to ensure company success.
A well-formed board must include members who have a wide range of expertise and perspectives, who are willing to challenge the board’s assumptions and views. This will lead to more thorough discussions and improve the effectiveness of the board.
As the responsibilities of the board continue to evolve, it must be prepared to handle emerging technology and key issues, such as climate and diversity disclosures that could impact a company’s bottom line. It is crucial to establish a culture which rewards and encourages ongoing education and discourages the habit of complacency.
The board should set goals and objectives for the strategic plan, both in the short and long term, and implement mechanisms for monitoring the progress towards these goals. The board also oversees the chief executive officer, and formulates the policies and guidelines which govern the company’s activities.
The board is accountable to determine what risks are acceptable and how to balance these with safeguarding shareholder interests. The board must develop risk assessments, establish policies that guide its actions and those of the manager, and establish accountability systems to help the board fulfill its stewardship obligations.
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