Guidelines for governance


The objective of the Guidelines

Any enterprise, whether it operates in the private or public sector, will need to tackle frequent changes in the framework conditions in which it operates. These changes take place with an increasing frequency and enterprises are faced with the challenge of crises, disasters, business scandals and global pandemics. Systematic, efficient, and effective governance is critical to an enterprise’s ability to achieve its goals, and these Guidelines identify components which are key to an enterprise’s good management, survival, and success over time. For each component a suggested practical approach to successful treatment is described. The thinking behind the components is that they contribute to the creation and maintenance of a robust and durable enterprise with the ability to adapt itself to meet various and changing framework conditions.

The Guidelines are not a tutorial, neither are they fashioned to address all the detailed requirements of a given industry and sector specific laws and regulations. The components will address many of these requirements but not necessarily all of them. Users of these Guidelines must therefore adapt the various components to the detailed requirements of their own industry and sector, as well as to the enterprise’s size, complexity, culture etc. The guidelines allow for flexibility in their use. Adherence to the components should be a goal, but some components can have limited relevance in certain situations and especially for smaller enterprises. As an enterprise grows in size and complexity, the need will grow for a clarity of structure, objectives and planning processes as well as risk management and control. The suggested practical approach should assist in this development process.