Group Governance Framework: An Imperative For Today

What is Group Governance?

Group governance is the framework of policies, processes, controls and reporting lines through which a parent company exercises oversight, sets standards and aligns the conduct of its subsidiaries, joint ventures and associates with the strategy, values and risk appetite of the group as a whole. It moves the unit of governance from the standalone company to the corporate group. Where conventional corporate governance focuses on the relationship between the board, management and shareholders of a single entity, group governance recognises that decisions, capital flows, contracts, brand and reputation traverse legal boundaries within a corporate group, and that the parent's accountability extends — in substance, if not always in form — to the conduct of its controlled entities.