How well do you know corporate governance?

Governance in a corporate context refers to the rules and practices by which companies are governed or run, and the system by which entities are directed and controlled. It encompasses the processes by which organizations are directed, controlled, and held accountable, including the authority, accountability, leadership, direction, and control exercised in an organization.

Statutory obligations on company directors in relation to risk management include directors’ duties at common law, in the Corporations Act and under other statutes, the ASX Corporate Governance Principles and Recommendations for listed companies, ASIC, APRA and ATO standards, regulations and regulatory guidance, the Privacy Act and notifiable data breaches to the Office of the Australian Information Commissioner, emerging regulation around cyber security and the protection of critical infrastructure assets and assets of national importance, environmental protection legislation, anti-discrimination laws, anti-money laundering laws, whistleblowing legislation, public sector governance legislation and standards applicable to public sector entities, ACNC legislation and regulation applicable to charities and not-for-profits, state and territory legislation applicable to incorporated associations, workplace health and safety legislation, and workers’ compensation law.

Stakeholders in an organization are the individuals and groups who are depending on the firm in order to achieve their personal goals and on whom the firm is depending for its existence. ISO Guide 73 defines a stakeholder as a ‘person or group concerned with, affected by or perceiving themselves to be affected by an organization.’