COSO’s draft corporate governance framework provides roadmap to compliant business practices

Corporate governance is, all too often, handed down from generation to generation. Like a well-worn jacket, it works great—until it doesn’t. Typically, it is a crisis that forces companies to reassess their corporate governance framework, as gaps are filled and poor policies rewritten. But it doesn’t have to be that way.

Proactive reassessment and refinement should be part of any corporate governance strategy. Strong corporate governance “provides the clarity, agility, and oversight that an entity needs to seize opportunities, manage risk, and stay resilient through disruption,” says the introduction to a newly-released draft corporate governance framework for U.S. public companies offered by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

“As strategies shift and markets evolve, so too must governance. Done right, (strong corporate governance) boosts trust, strengthens reputation, attracts investors, and drives long-term shareholder value,” COSO said.