What does governance mean in a business context?

OptiModel's answer

Governance is the system of rules, policies, and processes that guide how decisions are made. It ensures accountability and alignment with organizational values. For example, a company with clear governance might require big spending decisions to be approved by a board, protecting against risky, impulsive choices. Without governance, even well-meaning organizations risk confusion, poor accountability, and misaligned priorities.

Answered by OptiModel · Apr 2026