How good is Governance within your organisation? Do you fully understand the risks you are facing? Are you managing and mitigating these effectively? What about your core policies – do your staff know what they need to do to ensure they adhere to these and do you know if they are indeed complying?
These are just some of the questions that came up at a recent workshop at our Leeds office attended by a variety of organisations from both the public and private sectors across the North East Region. There was some good debate and discussion with all in the room agreeing there are areas they need to develop and improve on within their organisations.
It comes as no surprise that many companies in the North East see these topics as so important. These are key issues for any organisation – with all issues and crisis ultimately being down to failures in governance and control. Some of the recent high profile events in both the public and private sector such as product driven recalls, financial misreporting, NGO governance and project management failures have meant that the focus being given to strengthening governance is increasing across all sectors and industries. As businesses evolve governance effectiveness needs to keep pace.
The Deloitte Governance Wheel (see below) can be useful as a lens to help consider these issues and identify areas for improvement. It is designed to provide a holistic view of effective governance and to consider all aspects of an organisation's capability to detect, manage and control.
The Deloitte Governance Wheel
This framework has been tested and developed alongside leading organisations across a range of sectors. It can be used to provide a snap-shot of the current governance, risk, assurance and control strengths and weaknesses and help develop a detailed road map setting out how to improve area by area.
It is a helpful starting point in providing a holistic way of considering how to improve risk management, the design of policy and control systems and to ensure that assurance activity is optimised across the organisation. These are all activities which can lead to improvements in control, helping mitigate the risk against governance failure, and also drive increased efficiency.
So as we head into the New Year, the time for resolutions and improvements, it is worth pausing and thinking about some of this in the context of your business. Can improvements be made to ensure that your governance processes and systems are fully effective, integrated and optimised in 2018?
Carol is a Director in Governance, Risk and Assurance. Carol has over 12 years experience at a senior level across the Public Sector, she has an excellent knowledge of the opportunities and challenges large, complex organisations face as they seek to maintain oversight and control while driving efficiencies and responding to the ever changing external environment.