Financial Service Industry – ADLA`s, ODP`s, FSP`s, CASP`s, VCC`s, Fintech`s, TPPP`s – The Role of Corporate Governance

Hertz Experts
Sep 19
2 min read

Two Hertz Consulting experts sitting on a bench outdoors, discussing while holding a tablet and discussing Corporate Governance. One wears a white shirt, the other a dark suit. Greenery in background.

The World has seen massive corporate failures over the past two decades, that caused huge financial losses, not only to lenders, but to all parties involved in the eco-system. These failures are mainly to be blamed on poor Corporate Governance, limited transparency and insight into the financial performance, risks and decision-making processes and no clear lines of accountability to prevent misconduct.

Corporate Governance is the foundation for establishing trust starting from the management of the company, with its stakeholders that includes shareholders, employees, customers, community, lenders, and Regulators.

Corporate Governance serves several critical functions such as:

Transparency:
- By disclosing accurate and timely information about the company’s financial performance, inherent risks, and preventative measures to combat it, and decision-making processes, a solid corporate governance framework promotes transparency;
Accountability:
- Establishing clear lines of accountability and defence to help prevent any form of misconduct, ensure responsible decision-making and the recording thereof, and hold management accountable to all stakeholders; and
Sustainability:
- Effective corporate governance practices within the company, should contribute to long-term sustainability by mitigating identified risks, fostering innovation, and aligning the objectives with its environmental goals.

The above does not only apply to large Corporates, but with any type and size of business. Therefore, Corporate Governance plays a pivotal role in shaping the ethical framework and operational integrity of your company in South Africa.

At Hertz Consulting, we have the necessary experience to assist your company with a tried and tested Corporate Governance Framework. Our Framework encompasses the set of principles and practices that will guide your company to ensure that there are proper controls, direction and managed in a way that embeds the critical functions to ensure your entire eco-system including the Regulators are comfortable with the business activities and management of the company.