Under Control: Governance Across the Enterprise

2.1. The Goals of Governance

Governance activities and initiatives are designed and executed with two primary goals in mind:

1. Create value for the corporation. Building value is possibly the most important goal of a corporation. This is what provides returns to shareholders, creates opportunities for employees, and helps sustain corporate life during challenging economic times.

   Risk management has a large role to play in creating value, since taking prudent risks for financial gain is the key to sustaining and building corporate value. These risks include entering new markets, expanding geographically, changing the marketing strategy of the company, and even deciding to continue with a business that is not yet profitable. These are all risks related ...