Taking part in governance discipline should be seen as a leadership style and effective tactics to achieve high-performance business results with consistency.
Governance is like steer-wheel, to ensure enterprise running in the right direction and well headed to the destination at the premium speed. It’s important to set up strong governance initiatives in an organization for identifying those common risks which various stakeholders in the organization have to deal with and aim to minimize.
Technically, how to enforce the organizational governance discipline depends on the nature, scale, and complexity of the organization, as well as understanding its risks and conduct.
Integrated GRC provides a check and balance on harnessing strong management disciplines to lift up corporate agility and maturity: Most people have come to believe it’s easier and safer to adapt to the environment, rather than promote or initiate change. If your current management and governance practices generate your irrational business activities, behaviors; it needs to be changed to avoid creating more of them. Agile governance is in demand for improving the functioning and transparency of the company, business changeability, its business strategy implementation, and management performance. The more diverse, regulated, and geographically dispersed an organization is or becomes, the more integrated GRC approach becomes. Governance and risk management are important but should be handled and prioritized in such a way that they’re inherent in the way to improve decision coherence without impacting business flexibility to deliver alternative solutions.
Governance as a learning tool needs to be well understood and accepted: Strong governance clarifies business vision, encourages learning, enhances commitment, and improves business effectiveness. Enhancing governance discipline can be implemented by setting good policies to encourage fitting mindsets, positive attitudes and good behaviors. Governance is like a brake, the purpose is not to stop the car, but keep it running smoothly. Corporate governance discipline can fulfill its purpose as a business learning tool and a high-level corporate enabler by providing a structured communication bridge between shareholders and top business leaders such as corporate directors to initiate frequent conversations. It is a learning tool to rejuvenate business energy and reinvent business management.
Taking part in governance discipline should be seen as a leadership style and effective tactics to achieve high-performance business results with consistency. Good governance harnesses an effective decision-making system and controlling system, which can assure the corporations’ operation under the correct directions and behaviors correctly, lubricate the business value chain, ensure the people crossing the boundaries will pull in the same direction, improve flexibility in planning, build business agility, and improve organizational maturity.