The body said that the standard will be an independent governance standard for the UK and will be developed with ‘input and consensus’ from a variety of professional bodies, government departments and private businesses.
“With governance issues becoming more prominent, BSI and its committee of industry professionals are responding to industry’s request to create a broad-based standard that will consolidate existing governance principles”, said the BSI.
It added that the standard will provide guidance on how to achieve good governance throughout an organisation. The BSI said that the standard will focus on ‘effective structures, relationships and accountability and provide guidance to outsiders on what prerequisites an organisation should have in order to illustrate good governance’.
Michael Faber, Committee Chair, and member of the Executive Committee at the Institute of Operational Risk, said: “Governance issues have shot up organisations’ agenda over the last few years. Whether it’s been the Olympus accounting scandal or financial crash of 2008-09, lack of governance and oversight has been proven to have huge financial and reputational consequences.”
“As the draft standard develops I will be calling on all organisations to consider reviewing and commenting on the development, taking advantage of the public consultation process that will take place later in the year. It’s an excellent opportunity to get involved, and I look forward to receiving feedback towards publication of the new standard”, said Mr Faber.
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