Corporate Governance

Justice Owen in the HIH Royal Commission described it as:

Corporate governance is ‘the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations’. It encompasses the mechanisms by which companies, and those in control, are held to account.

Why is Corporate Governance Important?

Effective Corporate Governance structures aid organisations to achieve their objectives while at the same time ensuring that risks are monitored and assessed by providing accountability and control systems appropriate to the risks involved.

Benefits of effective Corporate Governance

  • Accountable management
  • Improved decision making based on sound financial information
  • Better managed risk through the identification of weaknesses in internal controls and appropriate strategies for improvement.
  • Effectively monitored and measured performance