Abstract
Operational governance is I believe the missing link that can help organisations in their effort to convert a conceptual model of good governance into tangible action and improvement. Organisations that lack a well defined operational governance structure are not nearly as effective as they could and should be (Fig. 3.1).
The asteroid and comets, seemingly haphazard and insignificant in the scale of things and especially compared to the mighty sun and the magical stars, are nevertheless ultimately responsible for bringing life on Earth through transmission of water and carbons from other distant worlds.
The senior managers operating at this level are like the asteroids and comets: if you can coordinate their apparently random activity, it could make a difference between life and death for the organisation.
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Notes
- 1.
The American Accounting Association, The American Institute of Certified Public Accountants, Financial Executives International, The Institute of Internal Auditors, and The Institute of Management Accountants.
- 2.
The Sarbanes-Oxley Act came into force in July 2002 and introduced major changes to the regulation of corporate governance and financial practice. It is named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, and it set a number of non-negotiable deadlines for compliance.
- 3.
The CoCo (criteria of control) framework was first published by the Canadian Institute of Chartered Accountants in 1995. This model builds on COSO and is thought by some to be more concrete and user-friendly. CoCo describes internal control as actions that foster the best result for an organization. These actions, which contribute to the achievement of the organization’s objectives, focus on: effectiveness and efficiency of operations; reliability of internal and external reporting; and compliance with applicable laws and regulations and internal policies. CoCo indicates that control comprises: “Those elements of an organization (including its resources, systems, processes, culture, structure, and tasks) that, taken together, support people in the achievement of the organization’s objectives.”
- 4.
The guidance is also known as ‘The Turnbull Report’ was issued by the ICAEW in September 1999. It was the first version of the guidance on the implementation of the internal control requirements of the UK Combined Code on Corporate Governance.
- 5.
The Chartered Institute of Internal Auditors (IIA) is a professional body focused exclusively on internal auditing. They have been active for over 60 years and unite a global community of 170,000 internal auditors globally.
- 6.
Page 41 Glossary to the booklet: Definition of Internal Auditing, Code of Ethics, International Standards for the Professional Practice of Internal Auditing.
- 7.
The guidance is also known as ‘The Turnbull Report’ was issued by the ICAEW in September 1999. It was the first version of the guidance on the implementation of the internal control requirements of the UK Combined Code on Corporate Governance.
- 8.
The Institute of Internal Audit (IIA) has published two short guides to raise awareness about internal audit entitled: Transparency, Reliability, Effectiveness, Ethics published by the Global Institute and What is Internal Auditing published by the IIA – UK and Ireland. The Institute has published “An approach to implementing Risk Based Internal Auditing” that sets out methodologies for assessing an organisation’s risk maturity, the preparation of periodic audit plans and individual assurance engagements.
- 9.
- 10.
- 11.
Which stands for ‘Managing Successful Programmes’.
- 12.
Yet another standard: PRojects IN Controlled Environments.
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Vagadia, B. (2014). Operational Governance. In: Enterprise Governance. Management for Professionals. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38589-6_3
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