Governance of Public Benefit Entities - The Bold Trustee or Non Executive Director

Presently many organisations are facing huge challenges.

It is up to the executive and non executive wings of an organisation to meet these challenges and work together.

But let's be honest. How often does this happen?

We must demonstrate good governance and not leave risks unresolved. The non executive wing of an organisation should show leadership in terms of risks and financial controls. It cannot just take the word of executive management for granted.

Unfortunately in my experience, the non executive wing of an organisation is often far too timid and adopts a nodding dog approach to the management side of an organisation.

There should be joint agreement on progress and performance of an organisation between its executive and non executive wings. A lack of this can cause deep long run problems in the future.

We have seen this emerge with the likes of Carillon and other such instances.

Without proper challenge from the non executives an organisation can meander down a path to oblivion. Policies and procedures must be challenged effectively, without fear or favour.

No challenge can lead to a quiet life in the short to medium term but big problems later on!

My experience especially of smaller organisations is not good!

Non executives are too often submissive nodding dog types who do not feel confident in challenging the executive on difficult Issues!

This is sad but true.

Non executives need to be bold and courageous in rheir challenge role.

Without meaningful challenge and action organisations can be particularly vulnerable, especially in these straitened times.

Yes ! Non executives and trustees must be brave and although this can be challenging in the short to medium term, they must be concerned with the long term health of the organisation.

That must be our ultimate objective!