Governance vs. Governance Function

Attribute	Governance	Governance Function
Definition	The system of rules, practices, and processes by which a company is directed and controlled.	The specific tasks and responsibilities assigned to a governance body or function within an organization.
Focus	Overall management and oversight of an organization.	Specific functions related to decision-making, compliance, risk management, etc.
Scope	Broader in scope, covering all aspects of organizational management.	More specific and focused on particular areas or functions within an organization.
Responsibility	Lies with the board of directors and senior management.	Assigned to specific governance functions or bodies within the organization.
Accountability	Accountable to stakeholders, shareholders, and regulatory bodies.	Accountable for specific governance functions and outcomes.

Definition

Governance refers to the process of decision-making and the process by which decisions are implemented or not implemented. It involves the structures and processes for decision-making, accountability, control, and behavior. Governance can be applied to different levels of society, from corporate governance to government governance.

Governance function, on the other hand, refers to the specific tasks and responsibilities within the governance framework. It focuses on the functions that need to be performed to ensure effective governance. This includes activities such as setting objectives, monitoring performance, and ensuring compliance with regulations and policies.

Scope

Governance has a broader scope as it encompasses the overall framework within which decisions are made and implemented. It includes the structures, processes, and mechanisms that influence the direction and performance of an organization or society. Governance function, on the other hand, has a narrower scope as it focuses on the specific tasks and responsibilities within the governance framework.

While governance sets the overall direction and framework for decision-making, governance function ensures that the necessary functions are carried out effectively to achieve the desired outcomes. Both governance and governance function are essential components of effective management and decision-making.

Responsibilities

In terms of responsibilities, governance involves setting the strategic direction, making key decisions, and ensuring accountability and transparency. It also involves managing risks, ensuring compliance with laws and regulations, and monitoring performance. Governance function, on the other hand, involves specific tasks such as defining objectives, establishing policies and procedures, and monitoring and evaluating performance.

While governance is responsible for setting the overall direction and framework for decision-making, governance function is responsible for ensuring that the necessary functions are carried out effectively to achieve the desired outcomes. Both governance and governance function play a crucial role in ensuring effective management and decision-making within an organization or society.

Relationship

Governance and governance function are closely related as they both contribute to the overall effectiveness of decision-making and management. Governance provides the framework and direction for decision-making, while governance function ensures that the necessary functions are carried out effectively to achieve the desired outcomes. Both governance and governance function are essential components of effective management and decision-making.

While governance sets the overall direction and framework for decision-making, governance function ensures that the necessary functions are carried out effectively to achieve the desired outcomes. Both governance and governance function are interdependent and work together to ensure effective management and decision-making within an organization or society.