Feb 10, 2016
From the Global Enterprise Institute
The governance models of private companies are in constant need of fine-tuning. Is the organization obtaining sufficient insight regarding its full range of risks and opportunities? Are owners and management teams sharing the right information with the right set of advisors and board members? Is the governance in place today optimal for the vision and objectives of the company and its owners?
In a recent KPMG / Forbes Insights survey of 154 private company directors, we explore the issues and challenges related to governance models of private companies. The resulting report highlights key findings:
- The top three governance challenges cited by private company directors include improving risk management oversight, assessing innovation and emerging competition, and confirming/establishing company strategy.
- The most visible challenges to board effectiveness include budget/resource constraints, conflicts of interest (including the presence of related party transactions) and a compromised board due to an overrepresentation of controlling shareholders.
- Private company directors are looking to their governance processes and controls to improve M&A outcomes, enhance financial risk oversight and optimize the finance organization through performance evaluation and succession planning.
Get these insights and more from the full research report on Private Company Governance.