How a firm or company is governed is one of the three key factors in understanding ESG (Economic, Social & Governance) risks and opportunities. There are numerous competing factors to consider when assessing how a company is governed. Some relate to the company’s culture and its decision-making processes, but others lean towards factors such as diversity and inclusion, how its board of directors is organised and established, how the governing body operates, how executives are remunerated, how risks are managed, and how it deals with the interests of its stakeholders.
A company that is governed well mitigates and controls risks by working within applicable laws and regulations, and has robust systems, controls, and processes in place to demonstrate good governance. The effective management of competing or conflicting interests is of paramount importance for good governance. In addition to receiving accurate and reliable management information and reporting, with comprehensive business risk assessments, it is essential that minutes and records evidence them as fit for purpose!
A well governed company will minimise their exposure to governance risks and should be open to objectively assessing their governance arrangements against industry wide benchmarks and applicable guidelines, especially now with the increasing prominence of ESG.
Danos Consulting is a specialist consultancy firm for leading organisations across Financial Services, Commerce and Industry and the Public Sector. With access to an unparalleled talent network, we provide experienced first-class practitioners. We offer staff augmentation, interim resourcing, and consultancy services in undertaking ESG reviews and assessing governance against good industry practises and regulatory expectations.
If you would like to discuss your firm’s governance or ESG projects further, please contact Gurjit Purewal who will be very happy to discuss your options.
Gurjit Purewal | Danos Consulting
E: firstname.lastname@example.org | T: +44 (0) 20 7610 6442