2. Dentition of Governance.....................................3
Corporate governance.................................... 3
The importance of good governance............. 4
Governance with saas..................................5
Governance failure....................................... 7
Corporate governance Success .................... 9
Reference.....................................................10
3. DEFINITION
governance :involves the system by which an organization is controlled
and operates, and
the mechanisms by which it, and its people, are held to account
Corporate governance: generally refers to the set of rule based
processes of laws, policies, and accountability that governs the
relationship
between the investor (stockholder of a company) and the investee
(management).
4. THE IMPORTANCE OF GOOD GOVERNANCE
Visibility
of errors :repeatability and consistency quickly highlights nonconformists in
the process.
Reduced
costs : repeatability and consistency eliminates waste from scrap, rework and
other non-value added processes.
matching
products in the market : product that reaches the market meets the intended
specification and works correctly
Efficient
processes : due for repeatability and consistency of tasks
5. GOVERNANCE WITH SOFTWARE AS A SERVICE
SaaS governance practiced in a holistic context is a means to be a
better business partner and to move nearer to the seemingly
impossible goal of aligning IT with the business.
involves much more than a shiny new management application
enhanced business processes:
1.highly customize their application to meet the needs of an individual client
2.minimizing influences to business processes
3.cost savings from ongoing IT operations
4.reduced time to market for enhancements
5.providing the IT team with increased bandwidth to put financial and other resources to
work on more innovative projects
6. GOVERNANCE WITH SOFTWARE AS A SERVICE
How to Craft a SaaS Governance Policy
Step 1: Getting Started: Gather information on any policies you may have in place – start with sector heads and move through
appropriate teams consequently
Step 2: Compiling Best Practices: Each industry is altered, and of course every company has it’s own strong point and weaknesses.
However, here are a couple of general areas you might want to make certain your policy
addresses :functionality, Security , Integration , Does the SaaS vendor have a disaster
recovery plan in place?
Step 3: Draft it Up: Compile the best of the best policies. Make sure you have addressed your business’s greatest concerns, As you
appraisal the document you have drafted
Step 4: Executive Buy-in: Everyone has a boss, so the higher you can get this approval, the better.
Step 5: Wrapping Up:
Ask around
Make sure the policy addresses aspects of SaaS that are important to your business
Keep it straightforward
Get the big boss on board
7. GOVERNANCE FAILURE
Enron
was a Huston-based energy company. it became one of the 10 largest companies in the USA. In the
following months, more and more evidence emerged about the weaknesses and fraudulent activity of
corporate governance.
Failure was:Enron’s board waived conflict of interest rules to let chief financial officer, to create private
partnerships to do business with the firm. These partnerships seem to have hidden debts and liabilities
that would have had a significant impact on Enron’s reported profits. Then, Enron’s collapse raises the
issue of how to reinforce the directors’ capability and will to challenge questionable dealings through
corporate managers.
Several corporate governance problems:
1-unlimited
power in the hand of the chief executive is an clear problem, and is one that
characterized Enron’s management.
2-there
were numerous diagrams of unethical activity within the Enron organization that
continued to come to light long after its collapse.
8. GOVERNANCE FAILURE
Parmalat :Financier, the Italian dairy and food giant, is fast joining Enron and WorldCom as a
household name for corporate scandal.
Parmalat was typical of this form of corporate governance. This is with controlling Tanzi shareholders
channelling corporate resources illegally to themselves.
corporate governance disasters which led to the Parmalat's crunch:
1. Firstly, one of the non-executive directors in Parmalat was not independent as he had been working in
Parmalat as a senior manager.
2. Secondly, the chairman and chief executive position were not divided as was suggested by corporate
governance codes of practice in Parmalat Financiered.
3. Thirdly,the Preda corporate governance code in Italy specified that where a group of shareholders
controls a cmpany, it is even more important for some directors to be free from the controlling
shareholders.
9. CORPORATE GOVERNANCE SUCCESS
Abu Dhabi Commercial Bank (ADCB) is a financial institution operating in the United Arab Emirates (UAE),Jersey,
and India.it is the third largest bank in the UAE in terms of total assets.
Some Key Challenges :
Roles: The lines between board and management were unclear in some areas due to existence of an executive
committee that included representatives from both.
-Procedure: Board negotiations tend to include areas of day-to-day management issues.
-Terms and Appointments: Blurred terms of directors and appointments were made by shareholders directly without a
formal board nomination and selection process.
Abu Dhabi Commercial Bank has impacted in the four-to-five years after embarking on the corporate governance
changes:
1-ADCB’s governance reputation in the market has improved significantly :The added disclosures are widely considered best
in class among peers and helped enhanced the bank’s profile and image.
2-The board has demonstrated a higher level of effectiveness :Board has enhanced oversight and provides strategic
stewardship to the bank.
3-The bank reports that its organizational efficiency has improved significantly: since it streamlined its decision-making
process.