What is Enterprise Governance?
Enterprise governance is often said to be a framework into which many tools, techniques, and codes of best practice can fit that enable governing the enterprise.
A more formal definition would be: ‘The set of responsibilities and practices exercised by the board and executive management to provide strategic direction, ensure that objectives are achieved, ascertain that risks are managed appropriately, and verify that the organization’s resources are used responsibly.’
Corporate Governance Code
More and more organizations today have a corporate governance code. It does not ensure, but it enables transparency in the organization and prevents a corrupt culture from growing.
Corporate governance broadly refers to the mechanisms, relations, and processes by which a corporation is controlled and directed; involves balancing the many interests of the stakeholders of a corporation.
Read more about the UK Corporate Governance Code here
IFRS: A International Financial Reporting Standard
The International Financial Reporting Standards, usually called the IFRS Standards, are standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB) to provide a common global language for business affairs so that company accounts are understandable and comparable across international companies.
Balanced Score Card: An Example Governance Framework
The Balanced Scorecard is an approach to how companies can create shareholder value through more effective governance.
Below is a screenshot of a balanced scorecard. This type of diagram is often used in enterprise governance.
GDPR - General Data Protection Regulation
A new part of Enterprise Governance is GDPR. It is the European Union that has brought this new instrument to the market.
The General Data Protection Regulation (GDPR) (Regulation (EU) 2016/679) is a regulation by which the European Parliament, the Council of the European Union, and the European Commission intend to strengthen and unify data protection for all individuals within the European Union (EU). It also addresses the export of personal data outside the EU.
The primary objectives of the GDPR are to give control back to citizens and residents over their personal data and to simplify the regulatory environment for international business by unifying the regulation within the EU
Here you can read more about GDPR - General_Data_Protection_Regulation.
Are you interested in doing Enterprise Governance on Dragon1?
Dragon1 is fit for governance, financial reporting, and monitoring code compliance. You can create the most effective balanced scorecards.
If you are interested in doing enterprise governance, create your Trial Account here today.