Library Publications Toolkit: Board and Governance for FIs

Toolkit: Board and Governance for FIs

06 Aug 2007 7513
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Governance as a term has progressed from obscurity to widespread usage. The need of governance exists anytime a group of people called stakeholders come together to accomplish an end result. Governance is a process by which a board of directors, through its management, guides an institution in fulfilling its corporate mission and protects the institution’s assets over time. A board of directors is established to provide oversight and give direction to the managers of an institution. Fundamental to effective governance is the ability of individual directors to work together to accomplish a balance between strategic and operational responsibilities. Effective governance occurs when a board is able to provide guidance to management in strategic issues and is effective in overseeing management implement the strategic plan goals and initiatives. Both sets of priorities are required to successfully navigate an institution through its short and long term growth. The role of the board is discussed in detail with supporting examples to help develop systems in the MFIs.

For a quick overview, do read through the toolkit summary.

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