Best Practices for Perfect Board Governance

A perfect board’s governance is a hot subject due to high-profile corporate scandals. What does perfect governance mean? What are the best practices to attain it?

Good governance is built on the best practices of having clear policies on governance, creating an inclusive board, as well as conducting regular evaluations. Together, they assist boards to manage risk, governance and compliance (GRC) issues and provide value to the stakeholders.

It is vital for boards to define the distinct roles of the executive team developing a proactive cybersecurity culture as well as the board. They can then ensure these roles are aligned. They can then avoid managing daily operations in a micro-manage way. The board should be focused on the big picture and delegate day-today tasks to the executive team.

Another good practice is to promote diversity in governance in the boardroom, both on the basis of race and gender. This will ensure that the board has a wide spectrum of perspectives to consider issues and make decisions. It is also essential that the board keep up with the latest regulations that will impact the governance.

The board should also meet regularly and establish goals and objectives for the business. All decisions will be strategic. This will also make it easier to measure the effectiveness and progress.