The governance operating model increases the effectiveness of an organization by improving clarity, visibility, coordination, and effectiveness. It helps in defining roles, responsibilities, accountabilities, information flows, and guidelines needed for implementing governance. It also ensures that governance responsibilities are fulfilled by providing a clear understanding of management's decision-making and risk-management processes. Moreover, it aids in coordinated action by balancing considerations regarding centralization vs decentralization and considering local business, customer, compliance, legal, and other needs.
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