‘Doing everything better’ is how corporate governance is defined today. It covers in its ambit risk assessment and providing for risk cover, early warning systems against failure as well as prompt corrective action. Good corporate governance encompasses appropriate checks and balances through external and internal audits and accounting, clear division of responsibility, both horizontal and vertical, disclosure and transparency.
While there are several models of corporate governance, the choice essentially is between the ‘outsider’ model of the US and the UK which entails separation of ownership and management, and the insider model of Europe and Asia, where a small group of interconnected shareholders exercise control over management.