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Five KeyElements of Board Effectiveness - DECISION MAKING |
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The factors assessed within the DECISION MAKING component of the Cameron Ralph Board Effectiveness Model include:
- Consistent with strategic framework
- Evidence of thorough issue scoping and definition
- Setting of agenda – balance of forward thinking vs monitoring of results
- Appropriate use of committees in decision making (composition, clear roles, delegations, functioning)
- Thorough consideration of risks, alternatives, exits strategy
- Evidence of clear and comprehensive decision criteria
- Handling of conflict of interest / disclosure of interests
- Consideration of ethical dimensions, where appropriate
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A subsidiary board, with trustee responsibilities, had experienced a number of breaches committed by the operating subsidiaries of the holding company. The board is comprised of 50% external, independent directors and 50% internal executives. Cameron Ralph was engaged to review the board composition and recommend on any other practices which the board could adopt to better fulfil their duties and obligations, and prevent any future breaches.
Cameron Ralph found the board lacked adequate mechanisms for effectively exerting their authority and made a number of recommendations in that regard.
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Copyright © 2007
Cameron Ralph Pty Ltd |
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