Governance refers to the processes, activities and relationships of AMBA that make sure we are effectively and properly run. Good governance is when AMBA has practices and procedures in place that help us to do our work effectively and openly, and when the roles and responsibilities of people in our organisation are clearly understood. This includes the particular roles of board members and the roles of volunteers and members.
Why is good governance important?
Good governance helps make sure that the day-to-day work of AMBA aligns with and contributes to achieving our purpose. It is important that board members ask why are we here, what are we doing and how will we do it? Asking these questions (and trying to answer them) helps us to stay true to our vision and mission.
Ten principles that promote good governance
1 Roles and Responsibilities
There should be clarity regarding individual director responsibilities, organisational expectations of directors and the role of the board.
2 Board Composition
A board needs to have the right group of people, having particular regard to each individual’s background, skills and experience, and how the addition of an individual builds the collective capability and effective functioning of the board.
3 Purpose and Strategy
The board plays an important role in setting the vision, purpose and strategies of the organisation, helping the organisation understand these and adapting the direction or plans as appropriate.
4 Risk
By putting in place an appropriate system of risk oversight and internal controls, boards can help increase the likelihood that their organisation will deliver on its purpose.
5 Organisational Performance
The degree to which an organisation is delivering on its purpose can be difficult to assess, but this can be aided by the board determining and assessing appropriate performance categories and indicators for the organisation.
6 Board Effectiveness
A board’s effectiveness may be greatly enhanced through: careful forward planning of board-related activities; board meetings being run in an efficient manner; regular assessments of board performance; having a board succession plan; and the effective use of sub-committees, where appropriate.
7 Integrity and Accountability
It is important that the board have in place a system whereby: there is a flow of information to the board that aids decision-making; there is transparency and accountability to external stakeholders; and the integrity of financial statements and other key information is safeguarded.
8 Organisation Building
The board has a role to play in enhancing the capacity and capabilities of the organisation they serve.
9 Culture and Ethics
The board sets the tone for ethical and responsible decision-making throughout the organisation.
10 Engagement
The board helps an organisation to engage effectively with stakeholders.
