On one hand, strong governance fosters stability, transparency, and investor confidence. On the other hand, overly rigid structures can stifle innovation and growth.
To help ensure governance within your company, it’s important to establish and maintain robust internal controls and promote ethical conduct and compliance.
Here are a few things to keep in mind:
The rulebook
Being familiar with relevant regulations and industry best practices is essential. You need to understand anti-bribery and corruption laws, financial reporting standards, and internal control frameworks.
Risk management
CFOs play a key role in identifying and mitigating financial risks. In this position, you’ll work with the board and audit committee to establish robust risk management frameworks and ensure proper oversight of internal controls.
Transparency
Accurate and timely financial reporting is a pillar of good governance. You’ll oversee the integrity of financial data and ensure clear communication with stakeholders, fostering trust and confidence.
Build strong relationships with auditors
CFOs should maintain open and transparent relationships with internal and external auditors. So, you need to make an effort to cooperate fully with audits, address any identified deficiencies, and ensure that appropriate corrective actions are taken.
