Corporate governance practices need to change as the world changes. It is no longer the case that it was acceptable for corporations to ignore to shareholder concerns. With shareholder activism increasing companies must take the initiative to find and address investor discontent before it becomes a problem during proxy season.
A robust risk management system and internal control framework and a disaster recovery plan all contribute to the company’s growth. It’s also important that companies recognize that tackling risks isn’t an one-time affair it’s a continual process.
Companies that place a premium on establishing a solid governance system are more likely to flourish in the long term. Corporate governance isn’t just about checking boxes or meeting the minimum legal requirements; it’s about creating the foundation for sustainable growth and prosperity.
It is crucial that board how to close a board meeting members are aware of risks and challenges that businesses may confront. This begins with an understanding of best practice guidelines that are continually updated to ensure compliance reflect the values and strategies of the organisation, and help streamline processes.
It’s also crucial that boards take the time to learn and implement best practice technology, such as generative AI. This requires investment of both time and resources but is the only way for boards to be able to accurately assess the effectiveness of an organization in managing its risks.