Corporate Governance Tips For the 21st Century

As the world continues to evolve, a company’s corporate governance policies must change. Gone are the days when it was acceptable for companies to not pay attention to shareholder concerns. With shareholder activism increasing and increasing, companies must actively recognize and address shareholder discontent before it becomes an issue during proxy season.

A robust risk management system, internal control framework, and a disaster recovery strategy all are essential to the development of a company. It is also essential for businesses to understand and accept the fact that addressing risk is not only a once-in-a-lifetime event, but it is a continual process.

Companies that put a priority on establishing a solid governance system are more likely to flourish over the long run. Good corporate governance doesn’t mean ticking boxes or achieving the legal minimum, it’s about laying the groundwork for sustainable growth and prosperity.

With the range of risks and issues that a business can face increasing, it’s vital that the board members know how to navigate those pitfalls. This begins with an understanding of best practice policies that are constantly being updated to ensure compliance to reflect the values and strategies of the company, and improve processes.

It’s also vital that boards invest the time to understand and implement best practices in technology, such as generative AI. This requires an investment of both resources and time, but is the only way for boards to be able to evaluate how well an organisation is managing its risks.