Distinguish roles and responsibilities, and differentiate between the Chair of the Board and the company CEO. Describe the duties and responsibilities of the board members so they understand, which makes everyone else’s job a lot easier. Make the distinction between when and where members have authority to delegate, forcing accountability.

Building the right team is difficult; therefore, following some guidelines in the corporate governance policy helps. Hiring procedures include criteria for hiring qualified, skilled, competent, and knowledgeable members. Included must be clear guidelines on members’ assessment, ensuring they fulfil their duties.

Before assuming any financial risk, it is advisable to define how much cash flow should be available at any given time in your company. Risk management is integral to a business policy, as one that is inadequate can send any good company into bankruptcy. Employing a standard for your company’s risk tolerance of how much cash flow should be available before assuming any risk contributes to healthy financial management.

For a company to operate effectively, it’s pertinent that all its members be on the same page. Corporate governance policy helps companies move in the same direction. Whether it’s a company saying or strategies for the future, there must be some long-term success plan. The plan should align with your company’s philosophy of improving profit cycles. It will be easier to deal with managers or employees who go against the ideology with these established strategies.