Strong corporate governance is essential to the sound and sustainable functioning of financial institutions. The relationships between policies, processes, behaviours and oversight through which an institution is controlled and directed, operationalise an institution’s governance. The last decade has produced consistent evidence indicating that governance practices have not been meeting the expectations of customers, shareholders, regulators and the wider community. Loss of trust in the financial sector has been the result.
Rhizome believes a new era of governance is emerging. More active Boards, management and stakeholders will usher in a higher standard of corporate governance. The outcome of this evolution will be financial institutions proactively understanding which elements of their governance are supporting or detracting from the delivery of sustainable customer, risk and business outcomes.
Much like a rhizome, governance effectiveness has no real beginning or end, but has many roots. We occupy the space that connects all the key roots of effective governance:
- risk management
By combining these roots we are able to reveal the intrinsic but often overlooked links between human and cultural factors and an institution’s formal governance and risk frameworks. The outcome of this approach is the root cause understanding of how an institution’s governance is supporting or detracting from the delivery of sustainable customer, risk and business outcomes. Our insight stems from a unique blend of regulatory expertise, governance thought-leadership, risk profile assessment and behavioural risk management.
Aspiring banking, insurance and superannuation businesses seeking a licence to operate from APRA need to demonstrate effective governance. Based on our extensive regulatory experience and governance thought-leadership, Rhizome also helps these businesses navigate regulatory applications and approval processes.
At Rhizome, our interconnected reviews and advisory services help financial institutions to usher in a new standard of corporate governance.