Mastering Strategic Risk: A Framework for Leading and Transforming Organizations

Chapter 6 Governance, the Cornerstone of Risk: The True Role of Accountability in Organizational Systems

At the end of the day, mastering risk also hinges on ensuring that organizations maintain effective governance processes and structures. Fostering strong governance serves as the lifeblood of an organization’s success. At the core of governance is the important role of accountability. From the boardroom to the mail room, accountability depends on the actions and inactions of the key leaders, managers, and employees. The ultimate success of organizations of all types depend on the proper functioning of governance and accountability. Conversely, a company’s inability to leverage these pivotal players can lead to its demise.

Governance in Natural Systems: The Human Brain as an Example

Governance has been and will continue to be a much-debated topic because it is a vital aspect of our world. Unfailingly, we experience and expect it in our daily lives, whether it is through the laws and regulations that order activity on the local, state, or federal level or through organizations and political bodies that enforce and monitor national and internal affairs. Or even consider the notion of governance in nature, as there is an innate structuring and systematic cadence of the systems that operate our world. Governance sits at the epicenter of all of life!

When considering how we would define governance, we would agree that it encompasses a set of processes, mechanisms, systems, and ...