Corporate governance risk management guide
Produced in partnership with Sarah Hillary of BDO and Charles Portsmouth of BDO
Corporate governance risk management guide

The following Risk & Compliance practice note produced in partnership with Sarah Hillary of BDO and Charles Portsmouth of BDO provides comprehensive and up to date legal information covering:

  • Corporate governance risk management guide
  • Why you need to manage this risk
  • Top five priorities
  • 1. Compliance with applicable corporate governance codes
  • Compliance with applicable corporate governance codes—mini action list
  • 2. Board effectiveness
  • Board effectiveness—mini action list
  • 3. Board diversity
  • Board diversity—mini action list
  • 4. Organisational culture
  • More...

Corporate governance risk management guide

Why you need to manage this risk

The purpose of corporate governance is to help build an environment of trust, transparency and accountability necessary for fostering long-term investment, financial stability and business integrity, thereby supporting stronger growth and more inclusive societies.

It is the system of rules, practices and processes by which an organisation is directed and controlled. Corporate governance essentially involves balancing the interests of an organisation's many stakeholders, including shareholders, management, workforce, customers, suppliers, financiers, government and community. The focus of many of the recent changes to corporate governance codes and guidance emphasise an ‘enlightened shareholder value’ approach, recognising that companies are run for the benefit of shareholders, but that the long-term success of a business is dependent on maintaining relationships with its stakeholders and hence the external impact of the company’s activities.

Corporate governance also provides the framework for attaining an organisation's objectives, encompassing practically every sphere of management and operational activity. It creates a transparent set of rules and controls in which stakeholders have aligned incentives.

See subtopic: The corporate governance regime.

All directors have statutory duties and there is an increasing focus on these as part of the various corporate governance codes that are used in the UK. There is a myriad of other legislation that could call into question an organisation’s corporate governance, including Health & Safety law

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