What are the implications of the Deloitte Governance Framework for small and medium-sized enterprises?

The Deloitte Governance Framework was created in response to a need for increased disclosure in governance and risk oversight. This was identified in a Deloitte study which found that only 41% of Financial Statement Item (FSI) companies disclosed whether their risk management and oversight aligned with their strategy. The framework aims to improve clarity, visibility, coordination, and effectiveness within organizations.

The key takeaways from the Deloitte study on Financial Statement Item companies are that while these companies were maintaining governance and oversight, only 41% revealed whether risk management and oversight at the company aligned with strategy. This indicated a need for increased disclosure regarding governance and risk oversight, leading to the creation of the Deloitte Governance Framework. This framework aims to improve clarity, visibility, coordination, and effectiveness within organizations.

The potential drawbacks of the Deloitte Governance Framework are not explicitly mentioned in the content. However, like any governance framework, potential drawbacks could include the possibility of over-regulation, stifling of innovation due to strict adherence to the framework, and potential resistance from employees due to changes in established processes and systems.