The main challenge for most Boards is not in the understanding of their responsibility regarding providing this oversight. It is in execution. The most critical question that Boards ask themselves is how they successfully implement and incorporate corporate governance in the organisation. The following steps may assist in achieving successful implementation:

1. Incorporating Corporate Governance in the organisation’s strategy. This goes beyond just alignment. It is taking corporate governance as part of the organisation’s strategy not as a separate item to align to. This outcome based approach means setting key performance indicators and measures that speak to corporate governance within the organisation’s strategy. Monitoring the performance of those KPIs and continuously reviewing them will assist the Board not to lose sight and focus on corporate governance implementation.

2.Continuous review of the Corporate Governance Framework is also critical to the Board’s effective implementation of Corporate Governance in the organisation. The Board is able to identify global, industry and local market changes and developments and use the review as an opportunity to integrate those changes in the organisation’s Corporate Governance Framework.

Mpho Moletlo Kgosietsile (ACIS), MSc Corporate Governance

The King IV Code on Corporate Governance states that the governing body/board should serve as the focal point and custodian of Coporate Governance in an organisation. This is encapsulated in the organisation’s business cycle. It is responsible for. Steering and setting strategic direction, a proving policy and planning, overseeing and monitoring as well as ensuring accountability.

The main challenge for most Boards is not in the understanding of their responsibility regarding providing this oversight. It is in execution. The most critical question that Boards ask themselves is how they successfully implement and incorporate corporate governance in the organisation. The following steps may assist in achieving successful implementation:

1. Incorporating Corporate Governance in the organisation’s strategy. This goes beyond just alignment. It is taking corporate governance as part of the organisation’s strategy not as a separate item to align to. This outcome based approach means setting key performance indicators and measures that speak to corporate governance within the organisation’s strategy. Monitoring the performance of those KPIs and continuously reviewing them will assist the Board not to lose sight and focus on corporate governance implementation.

2.Continuous review of the Corporate Governance Framework is also critical to the Board’s effective implementation of Corporate Governance in the organisation. The Board is able to identify global, industry and local market changes and developments and use the review as an opportunity to integrate those changes in the organisation’s Corporate Governance Framework.

Mpho Moletlo Kgosietsile (ACIS), MSc Corporate Governance