For an effective governance system to align with BS13500 the executive team should set the governance direction within the organisation.
The organisation’s founding documents should be available and understood by the board. The purpose and values of the entity should be established and reviewed for appropriateness and updated as applicable.
The executive team should define the needs and expectations of stakeholders balanced against external and internal issues. To do this a comprehensive analysis of the external and internal factors is required. There are various frameworks such as a PESTEL analysis.
Priorities and risks should be defined, and the governance strategy should reflect this review.
Once established the governance policies should ideally be documented and communicated within the entire organisation. These policies should form part of new employee induction and on-going competence assessments.
The executive team should set measurable governance goals and objectives than can provide meaningful analysis of the arrangements adopted.
In creating the governance direction, the executive team and the CEO should establish clear job roles, accountabilities, performance standards and reporting lines. This is of importance within the regulated sector where the adoption of SMCR (Senior Managers Certification Regime) is mandatory.
Where delegation takes place, clear written instructions should be defined to avoid ambiguity. These instructions should be regularly reviewed.
Governance policies and procedures should only change with the authority of the executive team and CEO.
For further information and to book your BS 13500 – Corporate Governance survey please contact: Marcus J Allen at Thamer James Ltd. Email: [email protected]
Marcus has twenty years’ experience in delivering Governance, Risk and Compliance solutions to over two hundred organisations within the UK. Marcus holds the respected Diploma in Governance, Risk and Compliance from the International Compliance Association and holds a master’s degree in Management Learning & Change from the University of Bristol. Marcus is a Fellow of the Institute of Consultants and Fellow of the Chartered Management Institute.