Corporate governance applies to all businesses, from huge multinationals to startups. Good corporate governance helps in reducing the cost of capital due to the reduction in risk. However, many organizations neglect this fundamental aspect of running a successful business. In this article at Project Smart, Rose Rosenhead explains how you can control and monitor your projects with a sound project governance system in place.
Monitoring Projects Through Corporate Governance
Prioritize Risk Management
Board members must establish an effective system for risk oversight and management. ‘Risk’ is not confined to compliance risk. However, it is a broader term that includes all risks of a company – cybersecurity, legal, and financial. Effective risk management leads to better decision-making.
Deal with Project Changes
Implement a process to deal with project changes. Though a few projects go through their life cycle without modification, you must ensure to control changes rather than allowing them to control you. “Use simple control sheet. Record the type of change and impact,” explains Rose.
Effective Leadership is a Must
Leadership encourages the strategic guidance of the company and promotes its longevity. In fact, an organization with strong leadership policies should develop a succession plan that will help deliver the next generation of executive leaders.
Timely and accurate disclosure of the information is essential for robust corporate governance. This includes the financial situation, ownership, and performance of the company. Keeping all stakeholders up to date through a company website will help you in demonstrating this principle.
Have an agenda and duration for each project meeting. Additionally, identify actions with specific deliverables, timelines, and owners. This has the two-fold benefit of both documenting the application of decisions and forming future agendas to ensure the application is tracked.
Corporate governance demands robust monitoring and control processes. To know more about how to implement corporate governance in your organization, click on https://www.projectsmart.co.uk/having-a-robust-governance-process.php.