Corporate governance review
Did you know that research shows companies with good corporate governance consistently perform more efficiently? In fact, the top performing companies in terms of corporate governance produce 18% higher returns while also maximising shareholder value. To put this figure in context, £100 invested in a well governed company will produce an average return of £120, while the same sum invested in a poorly run firm returns just £102. So as well as being “the right thing to do” it also makes commercial sense.
The key to good corporate governance
Good corporate governance is more than mere compliance with legislation or a tick-box exercise. It spans many areas of an organisation’s activities, which when put together add up to a well-run concern. According to the CBI, “Effective corporate governance requires balanced boards made up of people with the right skills operating in a transparent and accountable framework. Good practice should be shared across businesses but laying down inflexible rules can result in a tick-box approach, forcing businesses to adopt frameworks that don’t work for them and does nothing to improve outcomes.”
Here at Bridgehouse Company Secretaries we have identified that good governance broadly falls into seven key areas:
- Strategy and business planning
- Risk management
- Performance management
- Board functions and competency
- Internal controls
- Regulatory compliance
- Accountability and openness
Review and recommendations
Bridgehouse Company Secretaries is experienced in conducting comprehensive corporate governance reviews for organisations in both the public and private sectors. These compare current practice with best practice guidelines according to the UK corporate governance code and explore how good governance could be implemented within the organisation. This may include drafting governance policies relating to bribery or corporate hospitality, defining terms of reference for board committees, assisting with directors’ induction and development programmes or reviewing risk management practices.
We appreciate being presented with a long list of recommendations can be daunting so our findings are drafted in a way that allows you to ‘pick and choose’ which recommendations you wish to adopt and in which order. Bridgehouse can help you prioritise the recommended changes according to the time and resources available.
To book your corporate governance review or to find out more, contact us today.