Good Governance Handbook - HQIP

To ensure that these systems are robust and are functioning properly larger
organisations will have an audit committee, which is a committee of non-executives
(without the Chair) who will have an on-going assurance role to the board that all
relevant governance systems are working and delivering added value.
Boards need to check continually that their knowledge of their own organisation and
of the market is sufficient for purpose, but do so without delving into the
management of the organisation itself.
Finally, Boards and their members have a responsibility to anticipate and respond to
their external environment. This is always dynamic and a good board will spend time
future proofing the organisation by paying attention to new (or newly appreciated)
risks and opportunities. This can be done by directors rehearsing locally what has
gone wrong (and right) elsewhere, boundary issues and evaluating their own
instincts.
Why it is important
Skills alone are not enough to discharge accountabilities to stakeholders. Those
running an organisation must have an intimate knowledge of the organisation for
themselves before they can assure and act on behalf of other stakeholders.
Additionally, those governing an organisation need to understand the external
environment in order that they know the consequences of their decisions can manage
risk and are able to anticipate the outcome of different options.
To provide constructive challenge directors need to understand more than generic
business practice. In healthcare, when strategic decisions need to be taken the
various options themselves will require a degree of professional insight and
confidence in order to challenge and add to informed debate. Directors who do not
familiarise themselves with the market they operate in are being derelict in regard to
their overall responsibilities to stakeholders.
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