As the world continues to evolve, a company’s corporate governance practices have to change. The days of companies turning a blind-eye to shareholder concerns are long gone. Companies must identify and address the concerns of investors before they become a source of contention during the proxy season.

A solid risk www.boardroomdeluxe.com management system and internal control framework and disaster recovery plan all play a crucial role in a company’s growth. It is also crucial for companies to understand and accept that managing risk isn’t an event that happens once, but it is a continuous process.

Companies that put a priority on establishing a solid governance system are more likely to flourish over the long run. Good corporate governance doesn’t mean ticking boxes or achieving a bare legal minimum; it’s about creating the foundation for sustainable growth and prosperity.

With the number of risks and challenges that a business can face increasing, it’s vital that board members understand how to navigate those pitfalls. This begins with a solid knowledge of best practices guidelines that are continually updated to ensure compliance to reflect the strategy and culture of the business, and streamline processes.

It is also essential that boards put in the effort required to learn and implement technology that offers best practices, such as generative AI. This takes time and effort but is the only real way for boards of directors to gauge how well an organization is managing its risk.