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Governance capital

  • Writer: Ade McCormack
    Ade McCormack
  • Jul 28
  • 1 min read

What is Governance capital?

Governance capital is an organisational asset that will increasingly give investors and analysts confidence that the organisation is capable of navigating an increasingly disruptive world.


In general, governance addresses the structures, principles, decision-making mechanisms and accountability systems that enable an organisation to be directed, controlled and adapted effectively. Strong governance capital helps ensure the organisation acts responsibly, remains aligned with its purpose and creates sustainable value for its stakeholders.


Whilst control is important, intelligent organisations build governance capability that enables the organisation to move quickly and see risk as something that has to be acquired in order to create new sources of value.


Intelligent organisations see failure as a nature by-product of the innovation process rather than something to be avoided.


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