Board Governance and Compliance
Effective corporate board members build mutual respect, in part because they share confidential information and oversee serious issues. In their role, they address significant compliance matters that have the potential of presenting serious risks to the company. Issues could possibly implicate senior management, create significant reputational harm, cause financial risk, or insight a regulatory investigation.
Given their responsibilities to the corporate organization, board members need to challenge one another’s ideas and assumptions to arrive at the best possible outcome to serve the organization.
Clear delineation of responsibility for overseeing and implementing the program is an attribute of an effective ethics and compliance program. Otherwise, the program result will lack key components or will fail to realistically address compliance risks.
In addition to oversight of the company’s business continuity planning, boards should have full oversight over activities including:
- Obtain and review the compliance program and make updates quarterly or annually.
- Review and approve the company’s code of ethical business conduct, as well as any other significant compliance-related policies.
- Assess the structure and resources of the compliance function, including the personnel responsible for administering it, as well as its financial resources.
- Plan a strategy for possible risks that the company could face. This was evident given the turmoil caused by the pandemic. Risks can include safety incidents, cybersecurity and data breaches, natural disasters, and economic pressures.
- Hire the officers and define the responsibilities of the roles.
Effective corporate board members build mutual respect, in part because they share confidential information and oversee serious issues. In their role, they address significant compliance matters that have the potential of presenting serious risks to the company. Issues could possibly implicate senior management, create significant reputational harm, cause financial risk, or insight a regulatory investigation.
Guidance for Effective Board Governance
By having a comprehensive board governance and compliance program, organizations can foster a culture of trust, transparency, and responsibility that will help them succeed in today’s competitive environment. An organization could face significant legal consequences, including fines, civil or criminal liability, penalties, reputational damage, or other repercussions if regulations are violated. Our attorney help explain the legal implications of different policies, procedures, and standards and provide advice on how to establish an effective corporate compliance program.
Whether launching a new business or looking for ways to improve an existing governance structure, our team of experienced attorneys help organizations establish a board governance and compliance program that meets the needs of its stakeholders, while ensuring full compliance with all applicable laws, regulations, and standards.
Benefits of a comprehensive corporate governance program include:
- Improved corporate governance and compliance processes
- Increased shareholder value
- Effective risk management
- Enhanced employee morale and productivity