GOVERNANCE

GROUP MEMBERS

Bidar, Divina

 Despojo, Larisse

 Kasuyo, Laica

 Taji, Sharifa
Outline

 Governance Definition

 Governance Oversight
 Roles within Governance
Governance

• Combination of processes & structures

• Implemented by the Board

• To inform, direct, manage, and monitor the

activities of the organization

• Toward the achievement of objectives

Governance

 refers specifically to the:

a) set of rules

b) controls

c) policies

d) resolutions

 put in place to dictate corporate behavior

Governance

 overall means by which organizations operate

 umbrella
Steps/Guides in Governance Oversight
1) Identify key stakeholders
2) Understand the needs and expectations of key
stakeholders
3) Identify potential outcomes that would be
unacceptable to key stakeholders
A. Potential Outcomes
-Financial
-Compliance
-Operations
-Strategic
Steps/Guides in Governance Oversight
4. Establish tolerance levels on unacceptable
outcomes
5. Delegate authority to Senior Management
6. Specify to key risk owners the controls
7. Independent Assurance Activity
- Helps provide assessment on the
effectiveness of governance and risk
management activities
Roles within Governance

I. The Board and its Committees

II. Stakeholders

III. Senior Management

IV. Risk Owners

Board
 organization’s governing body
 ultimately responsible for governance creation
Stakeholders
 any party with a direct/indirect involvement in
organization’s business
 but are interested in it or has influence on the
same
1) Employees
2) Customers
3) Vendors
4) Shareholders/Investors
5) Regulatory Agencies
6) Financial Institutions
Senior Management
 executes day to day activities
 to ensure effective governance is achieved
Risk Owners
 individuals who have day to day
responsibilities
 direct in line with operations