The thrust of sound corporate governance is to help build an environment of trust, transparency and accountability in business entities. These are prerequisites for fostering long-term investment, business stability and integrity. It is important to remember that trust is the most valuable asset of a business; and good governance aims to protect and preserve that trust in the organisation.
Good governance entails effective and collective oversight by the board and senior management of a company. This would also include control layers of risk management and internal audit. These need to be based on a proper risk appetite with the purpose of inculcating appropriate risk culture. Ethical conduct, accounting transparency and appropriate business models are various components of the broader governance framework.