Boards need to improve their decision making process - have your say

Friday, August 06, 2010 | Posted by: Grant Thornton
Categories: FRC, Governance | Tags: governance, FRC, Board, Corporate Governance, Simon Lowe, UK Corporate Governance Code, NED, ICSA, Financial Reporting Council

A well designed decision making process is one of the most important characteristics of an effective board.  As such boards should not allow themselves to be influenced by a dominant personality or have “no go” areas for non-executives.

Ask yourself - is such a situation familiar to you?

A number of other issues have also been highlighted in this second consultation, on behalf of the Financial Reporting Council (FRC), by the Institute or Chartered Secretaries and Administrators (ICSA).

• More emphasis on the role of the chair as critical to building an effective board
• Creating a high performance culture which maximises the opportunities for value creation and minimises risk
• Creating an environment of challenge in the boardroom
• Board composition and diversity as major factors in delivering an effective board
• Improving directors’ skills, experience and knowledge with training
• Regular board evaluation

To submit comments on the guidance, click here ‘Improving Board Effectiveness’.  This is now open for consultation until 14 October 2010.  ICSA were commissioned by FRC to lead the development of this guidance which will complement the new UK Corporate Governance Code, issued in May 2010. 

Simon Lowe, Head of Business Risk Services is a member of the steering committee, and is urging you to take the opportunity to respond to the consultation. 

Please take the opportunity to share your thoughts on our Boardroom Blog.