Professional Documents
Culture Documents
Oprational Vs Corporate
Oprational Vs Corporate
the cornerstone of any organization's success. Operational governance is responsible for the daily
management of processes, resources, and the execution of strategies. It ensures that an organization
runs efficiently, effectively, and with minimal risk. Without sound operational governance, even the
best corporate governance principles would be impossible to implement and execute effectively.
Moderator: Thank you both for your opening statements. Let's move on to the arguments.
Operational Governance (OG): Operational governance ensures that a company's strategy and corporate
governance directives are translated into action. For instance, if a company's corporate governance
emphasizes ethical behavior, operational governance ensures that every employee understands and
complies with ethical standards on a daily basis. It's not enough to have a code of ethics in place;
operational governance ensures that it is lived and breathed by everyone in the organization.
Corporate Governance (CG): Corporate governance sets the long-term vision and direction for the
organization. It is corporate governance that attracts investors and secures the capital necessary to fund
operations. Without strong corporate governance, organizations can lose the trust of stakeholders,
which, in turn, can impact their operational governance. A poor corporate governance structure can lead
to unethical behavior and operational inefficiencies.
Moderator: Good points from both sides. Now, let's discuss risk management.
Operational Governance (OG): Operational governance is responsible for identifying, mitigating, and
managing risks on a day-to-day basis. Effective operational governance minimizes the chances of
operational disruptions, regulatory violations, and reputational damage. Without strong operational
governance, corporate governance principles are undermined by operational failures.
Corporate Governance (CG): Corporate governance, on the other hand, establishes the framework for
risk management. It ensures that risk assessment and management strategies align with the
organization's long-term goals and ethical standards. A well-defined corporate governance framework is
essential for setting risk appetite and strategies to protect the organization from existential threats.
Moderator: Thank you for addressing the risk aspect. Now, let's discuss the impact on stakeholders.
Operational Governance (OG): Operational governance directly impacts employees, customers, and
suppliers on a daily basis. A smoothly running operation ensures employee satisfaction, consistent
product or service quality, and reliable relationships with suppliers and customers. This, in turn,
strengthens the organization's reputation and can attract long-term investors.
Corporate Governance (CG): Corporate governance shapes the organization's relationship with a
broader range of stakeholders, including shareholders, regulators, and the public. The ethical values and
strategic direction set by corporate governance not only affect daily operations but also influence the
long-term perception of the organization. Without strong corporate governance, it's difficult to win the
trust of diverse stakeholders.