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OFFICIALCouncil PolicyAF TCouncil Expenses Policy Department/UnitCommunications, Governance & RiskFirst ImplementedSeptember 2020Review DateJune 2028Deleted: September 2024OriginCoordinator Communications,

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What is governance risk?

Governance risk refers to the potential for ineffective or unethical management decisions to negatively impact an organization's operations, finances, or reputation.

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All organizations, especially publicly traded companies, are required to assess and report on governance risk as part of their regulatory compliance obligations.

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Governance risk can be filled out by conducting a thorough assessment of the organization's governance structure, policies, processes, and practices, and documenting any potential risks or areas for improvement.

What is the purpose of governance risk?

The purpose of governance risk is to ensure that organizations are aware of, and actively managing, any potential risks related to their governance practices to protect the organization and its stakeholders.

What information must be reported on governance risk?

Organizations must report on their governance structure, policies, practices, potential risks, mitigation strategies, and any actions taken to address governance risk.

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