Under Control: Governance Across the Enterprise

5.4. Evolution of Boards

The role of Boards is evolving over time. Ten or more years ago, Boards were less aware of their role in governance; circumstances then may not have required it. Boards would often review the information that management presented to them, agree or disagree, and provide input—but in some cases didn't consider themselves to be the starting point for good corporate governance, as many Boards do today.

We've seen examples, including with WorldCom and Enron, and more recently with financial organizations taking on too much risk, where the governance that emanated out of boardrooms was either inadequate or didn't make its way across the enterprise. Or both.

Boards have now seen the requirement and need—and shareholders are ...