Given the recent spate of frauds, accounting irregularities and governance failures in the US and Europe, shareholders and other stakeholders want greater assurances that organisations can control risk and generate business stability.

Management teams that allow unidentified threats to suddenly materialise and threaten corporate survival can expect little sympathy in today's climate. They may not be given a second chance.

While compliance with the risk management demands of corporate governance can be perceived as a burden, the challenge is for organisations to integrate new controls into their existing business processes, rather than simply 'tick boxes' or create additional layers of internal bureaucracy.

If successful they can enjoy a range of business benefits, including better financial performance, improved ability to make risk-based decisions, more reliable investment strategies and more straightforward, less intrusive relationships with stakeholders.

Critical questions you need to consider

• Are you identifying risks to the best of your ability?

• Have you thought about how your corporate governance obligations can be incorporated into existing business processes and activities?

• Are you sufficiently involving your employees?

• Are you aware of the enabling activities for corporate governance to succeed, such as good communication, the right culture and attitudes within your business?