What are the benefits of having a governance operating model in a

Having a governance operating model in an organization provides several benefits. It improves clarity by defining the roles, responsibilities, accountabilities, information flows, and guidelines needed to implement governance. This helps the board and management translate governance principles into practices. It also ensures greater visibility into management's decision-making and risk-management processes. The model can provide details about the types and amounts of investments and transactions and the risk exposures. It also improves coordination by balancing considerations regarding centralization vs decentralization and considering local business, customer, compliance, legal, and other needs. Lastly, it increases effectiveness by providing specific data that the board and its committees require.

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Improved clarity–the board and management often run into a problem of translating governance principles into practices. The governance operating model makes a useful tool for the board to solve this problem by defining the roles, responsibilities, accountabilities, information flows and guidelines needed to implement governance. Greater visibility–to ensure that governance responsibilities are fulfilled, the board needs a clear understanding of management's decision-making and risk-management processes, which can be established by stating the types and amounts of investments and transactions and the risk exposures. Improved coordination–coordinated action requires balancing considerations regarding centralization vs decentralization and considering local business, customer, compliance, legal and other needs, which the model should be able to address, the experts say. Increased effectiveness–a model with specific data that the board and its committees require may serve the board in exec...

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Deloitte Governance Model

Improve clarity, visibility, coordination, and effectiveness within your organization with Deloitte's Governance Framework. Use this presentation to d...

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