Governance and Risk Management
Governance and Risk Management: Every organization, be it public, private, or non-profit, needs to have a governing body. This is the board or management committee, and this group takes responsibility for the organization’s leadership and control. The board or management committee is legally responsible for the organization’s well-being, and the people who are elected to the board or management committee need to take these responsibilities seriously. They are also expected to be honest and ethical and always act in the organization’s best interests. This means they need to declare any personal interest that might conflict with the organization’s interests or that might interfere with them carrying out their responsibilities. There are four important parts of the governance role:
- Providing leadership through forward-planning and guidance to the organization, particularly in developing a strategic direction for the organization
- Safeguarding the organization by acting as the custodian of the organization on behalf of its members or constituents.
- Monitoring and controlling the management of the organization through decision making, setting limits on what individuals can do within the organization and maintaining accountability.
- Maintaining the viability of the organization by ensuring that the organization has the resources to sustain itself over time and that the board or committee continues to provide effective governance
Program of assessment and capacity building can assist a board or management committee to:
- Make the most of its strengths and assets
- Build the skills of its members
- Address any deficiencies and
- Provide high-quality governance to the organization
