As the world continues to evolve and change, corporate governance practices must also evolve. Gone are the days when it was acceptable for corporations to ignore to shareholder concerns. Companies must recognize and address concerns from investors before they become a problem during the proxy season.
This means that a well-developed risk management procedure, an internal control framework, and a disaster recovery plan are all crucial to the success of any company. It’s also essential that companies realize that tackling risks isn’t a one-and-done affair and is a continuous process.
Companies that prioritize establishing good governance structures will be more successful in the long run. Corporate governance isn’t only about checking boxes or achieving the legal minimum. It’s about laying a solid foundation for sustainable business growth.
It is important that board members are aware of risks and challenges that businesses may face. This begins with a thorough understanding of best practice policies that are constantly being updated to ensure compliance with the culture and strategy of the business, and simplify processes.
It’s equally important that boards invest the time to learn and implement best practice technology, like generative AI. This takes time and effort but is the only way for boards of directors to know the extent to which an organization is managing its risk.
