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ISO 37000:2021 (Governance of Organizations) Awareness Training

ISO 37000:2021 (Governance of Organizations) Awareness Training Presentation.

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ISO 37000:2021 (Governance of Organizations) Awareness Training

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  1. ISO 37000:2021 Governance of Organizations © Operational Excellence Consulting © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Understand the governance framework outlined in ISO 37000 and its importance in organizational governance. Identify the key principles of ISO 37000 and their application in guiding governing bodies and governing groups. Learn to implement ISO 37000 effectively, apply best practices, and overcome implementation challenges. 2 © Operational Excellence Consulting

  3. CONTENTS 01 03 02 OVERVIEW OF ISO 37000 IMPLEMENTATION OF ISO 37000 PRINCIPLES OF ISO 37000 3 © Operational Excellence Consulting

  4. IS ORGANIZATIONAL GOVERNANCE JUST A BUZZWORD? Organizational governance is not just a buzzword; it’s the cornerstone of sustainable success, guiding every decision and action towards excellence and ethical leadership. 4 © Operational Excellence Consulting

  5. BREAKING THE MOLD: SHIFTING GOVERNANCE MINDSETS AND THINKING “ISO 37000 is too complex for us to understand.” “Our governance is good enough; we don’t need to change.” “We don’t need external standards to tell us how to govern.” “We’ve always done it this way.” 5 © Operational Excellence Consulting

  6. INTRODUCTION TO ISO 37000 ISO 37000:2021 is a guidance standard for governance ● It provides principles for good governance practice ● Helps organizations establish effective governance systems ● Emphasizes value creation, risk management, and accountability ● NOT intended for certification purposes ● 6 © Operational Excellence Consulting © Operational Excellence Consulting

  7. GOVERNANCE GONE WRONG: NOTORIOUS CASES OF ORGANIZATIONAL MISMANAGEMENT Lehman Brothers (2008) Volkswagen (2015) Wells Fargo (2016) Theranos (2018) Boeing 737 Max (2019) § Engaged in risky financial practices and excessive leverage. § Installed software in diesel vehicles to cheat emissions tests. § Created millions of fake accounts without customer consent. § Misled investors and regulators about its blood-testing technology. § Allegations of prioritizing profits over safety. § Resulted in two fatal crashes and scrutiny of the company’s safety culture. § Filed for bankruptcy, triggering a global financial crisis. § Led to fines, lawsuits, and damage to the company's reputation. § Faced regulatory penalties and loss of customer trust. § Led to the downfall of the company and criminal charges against its founder. 7 © Operational Excellence Consulting

  8. TRANSPARENCY INTERNATIONAL CORRUPTION PERCEPTIONS INDEX 2023 Corruption is highly prevalent in many countries around the world ● ISO 37000 is highly relevant to combating corruption ● 8 Source: Adapted from Transparency International © Operational Excellence Consulting

  9. KEY OBJECTIVES OF ISO 37000 Offer a framework for organizations to enhance their overall performance and achieve their objectives through effective governance. Provide principles and guidelines for good governance practice. Assist organizations in establishing, developing, and continually improving their governance systems. Emphasize the role of governance in creating value, managing risks, and ensuring accountability, transparency, and ethical behavior. 9 © Operational Excellence Consulting

  10. SCOPE OF ISO 37000 Provides guidance on principles and practices for good governance ● Emphasizes the role of governance in creating value and managing risks ● Focuses on accountability, transparency, and ethical behavior ● Provides a common language for all types and sizes of organizations across jurisdictions ● © Operational Excellence Consulting 10 10

  11. WORKING WITH NATIONAL CODES AND STANDARDS ISO 37000 serves as a guiding framework for evaluating and incorporating national codes and regulations. 11 © Operational Excellence Consulting

  12. ADVANTAGES AND BENEFITS OF ISO 37000 Alignment with National Standards Global Consistency Credibility and Trust ISO 37000 provides a globally recognized framework for consistent governance practices worldwide. Adherence to ISO 37000 enhances organizations' credibility and trustworthiness. ISO 37000 aligns with national standards, reducing complexity for international organizations. Legal Compliance Continuous Improvement Benchmarking and Comparison ISO 37000 helps organizations demonstrate compliance with governance-related legal requirements. ISO standards are regularly updated to reflect best governance practices. ISO 37000 allows organizations to benchmark governance practices against international standards. 12 © Operational Excellence Consulting

  13. DEFINITION OF “GOVERNANCE OF ORGANIZATIONS” “Human-based system by which an organization is directed, overseen and held accountable for achieving its defined purpose.” 13 Source: Based on ISO 37000:2021 © Operational Excellence Consulting

  14. THE ISO 37000 GOVERNANCE FRAMEWORK The ISO 37000 standard distills governance into 11 core principles that are at the heart of any successful organization. Foundational governance principles Value Generation Accountability Strategy Purpose Primary governance principle Enabling governance principles Oversight Key governance outcomes 14 Source: Adapted from ISO 37000:2021 © Operational Excellence Consulting

  15. 1. PURPOSE The Organizational purpose statement defines value for stakeholders ● Governing body responsible for defining and elaborating purpose ● Organizational values guide how purpose is achieved ● © Operational Excellence Consulting 15

  16. VALLUE CREATION, PRESERVATION AND EROSION Value Generation Accountability Enterprise Value Strategy Purpose Oversight A continuous cycle ensuring organizations thrive and evolve in a dynamic world. 16 Source: Adapted from ISO 37000:2021 © Operational Excellence Consulting

  17. 5. OVERSIGHT Governing body ensures internal control system is implemented ● Assures governance system is appropriately designed, operating as intended ● ISO 37000 outlines governing body’s role in oversight ● Provides clarity on internal control system, assurance processes at global level ● © Operational Excellence Consulting 17

  18. ISO 37000: KEY ROLES IN ORGANIZATIONAL OVERSIGHT Role Description Governing Body Responsible for setting direction, overseeing activities, and ensuring accountability. Management Responsible for day-to-day operations and implementing policies and decisions of the governing body. Stakeholders Individuals or groups with an interest in or affected by the organization’s activities. Auditors Independent individuals or firms auditing financial statements and ensuring compliance with regulations. Regulators Government agencies overseeing and regulating the organization’s activities. Advisors Individuals or firms providing guidance to the governing body and management on governance matters. 18 © Operational Excellence Consulting

  19. THE OVERSIGHT SYSTEM – CHECKS AND BALANCES GOVERNING BODY OVERSIGHT – Oversee the Organization’s Performance Assignment of authority and responsibility Assure itself that the governance system is appropriately designed and operating as intended Ensure that an Internal Control System (ICS) is implemented Fulfillment of objectives and accurate and timely reporting Direct reports by and private sessions with the control functions (Risk Management and Compliance Management) and Independent internal audit functions, e.g. internal audit Risk Compliance Management System Management System EXECUTIVE MANAGEMENT Reporting External audit and associated reporting to stakeholders and the governing body. System of Financial Controls Whistleblowing processes and personnel and customer feedback mechanisms. 19 Source: Based on ISO 37000:2021 © Operational Excellence Consulting

  20. 7. LEADERSHIP Governing body leads by example, creates positive culture ● Sets tone, engenders trust, cooperation with stakeholders ● ISO 37000 clarifies governing body should be values-driven ● Leads organization ethically, effectively, ensures such leadership throughout ● Sets tone for ethical, values-based organizational culture ● © Operational Excellence Consulting 20

  21. OVERVIEW OF ISO 37000 IMPLEMENTATION PROCESS Gap Analysis: Assess current governance practices against ISO 37000 requirements. Training and Awareness: Educate stakeholders about ISO 37000 and its importance. Monitoring and Review: Continuously assess and improve governance practices. 2 4 6 1 3 5 Understand the Standard: Familiarize yourself with ISO 37000’s principles and guidelines. Develop an Implementation Plan: Create a roadmap for integrating ISO 37000 into your organization. Implementation: Implement changes to align with ISO 37000's principles. 21 © Operational Excellence Consulting

  22. BEST PRACTICES FOR SUCCESSFUL IMPLEMENTATION Leadership Support Employee Engagement Regular Audits Continuous Improvement Clear Communication Ensure top management is committed to implementing ISO 37000. Involve employees in the implementation process to increase buy-in. Conduct regular audits to ensure compliance and identify areas for improvement. Continuously seek ways to improve governance practices based on ISO 37000’s principles. Communicate the benefits and goals of ISO 37000 implementation to all stakeholders. 22 © Operational Excellence Consulting

  23. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a Singapore- based management training and consulting firm specializing in enhancing business performance and effectiveness. We focus on maximizing customer value and minimizing waste through strategic adoption of Design Thinking and Lean management practices. For more information, visit www.oeconsulting.com.sg. © Operational Excellence Consulting

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