corporate-governance

Vocabulary Word

Definition

'Corporate-governance' is the system that directs and controls a company. It involves rules and procedures for making decisions to ensure the company is fair, transparent, and accountable.

Examples in Different Contexts

Corporate governance in risk management focuses on identifying, assessing, and mitigating risks to protect the company's assets and shareholder value. A risk manager might state, 'Through our corporate governance policies, we proactively manage financial, operational, and strategic risks.'

Practice Scenarios

Business

Scenario:

As members of the board, we must consider the long-term sustainability and profitability of our organization. With this in mind, we need to review our existing strategies.

Response:

True, we need to reassess under the lens of good corporate governance to ensure long-term sustainability.

Accounting

Scenario:

Transparency in financial reporting is a must. Given the new regulations, we need to reassess how we're managing documentation.

Response:

We will need solid corporate governance to ensure all our financial reporting protocols are transparent and compliant.