IT Governance: Guidelines for Directors

CHAPTER 2: GOVERNANCE AND RISK MANAGEMENT

Chapter one observed that corporate governance is overtly concerned with board structure, executive compensation and shareholder reporting, but the underlying assumption is that the board is responsible for managing the business and controlling the risks to its assets and trading future. Governance matters, and not just to the press: 20 out of the 30 largest European asset managers now factor governance into their investment assessments; institutional shareholders (particularly in the US and UK) are increasingly militant, with big pension funds under government pressure to exercise their votes in favour of effective corporate governance; and the regulatory objectives of governments across the OECD ...