Corporate governance is a complicated process and procedure that are designed to encourage transparency, accountability and integrity in the boardroom. These include setting up policies that reflect the corporate culture as well as ensuring compliance with laws/regulations and establish guidelines for decision-making and risk appetite. These policies should be recorded and made available to all board members, new directors and employees.

One of the most important responsibilities of the board is to pick to evaluate, monitor, and even replace (when needed) the CEO. This is a crucial part of the board’s role because it helps establish a link between the strategic direction of the organisation and the achievement of management.

The other role of a board is to examine and approve the corporate strategy that aims towards creating long-term sustainable values. In addition the board supervises the management of the company, including allocating capital for growth and monitoring and assessing risks. It also sets the „tone at the top” for ethical business practices.

In the end, it is essential for the board to be as informed as they can about the financial health of the business. This is achieved through thorough financial reporting and the establishment of effective procedures to assess the risk and ensure compliance.

The board should be able to make informed decisions about the company’s future and that’s why they need a broad variety of perspectives at the table. This is why it’s so important for boards to be diverse and include a mix of internal and independent members.