As the world continues to evolve and change, corporate governance procedures must evolve. The days of apathy are over. it was acceptable for corporations to not pay attention to shareholder concerns. Companies must be aware of and address concerns from investors prior to them becoming an issue during the proxy season.
This means that a solid risk management system, internal control framework and disaster recovery plan are all key to a company’s success. It is also crucial that businesses realize and accept that managing risks isn’t just a one-time thing and is a continuous process.
Businesses that focus on creating good governance structures are more likely to succeed in the long run. Good corporate governance isn’t about doing a job or achieving the legal minimum, it’s about laying the groundwork for sustainable growth of business and prosperity.
It is vital that board members are aware of the risks and challenges that businesses confront. This begins with an understanding of best practice policies that are continuously updated to ensure compliance to reflect the culture and strategy of the business, and to streamline processes.
It’s equally important that boards invest the time to learn and implement best practices in technology, such as generative AI. This requires both resources and time, but is the only way boards can be able to accurately assess how well an organisation is managing its risks.
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