What is Governance?

Governance involves the duty of supervising and safeguarding an entity’s assets, typically managed by the directors or board of an organization. These individuals establish strategic goals and policies, while the senior management team keeps an eye on the daily operations, ensuring alignment with the established strategies. This organizational structure is prevalent across different types of entities such as corporations, cooperatives, and partnerships, although specific titles and roles may differ.

Examples of Governance

Imagine a company like Apple. The board of directors decides on the big-picture strategies – like entering a new market or launching a new product line. Then, the senior management, including the CEO and other executives, takes care of the everyday tasks to make these strategies work, like designing products, marketing, and sales.