An Organization’s Governance

Organizational governance provides a framework of rules, relationships, systems, and processes that enable authority to be exercised and controlled within an organization. This includes the way the organization and those people that lead it are held accountable .If the governance is effective, it is more likely that the organization will meet its objectives in an uncertain world. Governance enables the leaders to direct and control the uncertainty associated with the organization’s opportunities and threats. Effective uncertainty management is essential for the organization to understand its risks, modify them if possible, and maximize its chance of achieving its objectives.

Risk is always focused on meeting the objectives, which is facilitated by managing the opportunities and threats that contribute to or detract from the objectives. Poor governance increases the uncertainty and leads to problems with the long-term stability of the o