Evergreens Insights: Marco Rasqué da Silva’s advice for banking clients on governance and risk management

In this short extract from the “Evergreens by Spuerkeess” podcast, Marco Rasqué da Silva, Secretary General of Spuerkeess, shares his advice on best practice in governance and risk management. Find out how good governance can not only protect the interests of stakeholders, but also strengthen the trust, credibility and sustainability of companies.

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In an increasingly complex and interconnected world, corporate governance plays a crucial role in the stability and growth of businesses, including financial institutions. Governance is not just about regulatory compliance; it also encompasses corporate culture, risk management, transparency and communication. Good governance not only protects the interests of stakeholders – including clients, suppliers and employees – it also strengthens the trust that people have in the company and its credibility in the marketplace.

1. The importance and evolution of governance

Corporate governance is not just for large listed companies. It’s also for small and medium-sized businesses and public institutions. Good governance means having clear structures and processes for decision-making and internal control. This begins with the establishment of governing bodies that can include independent members to oversee operations.

As a company grows, its governance needs to evolve. It is essential to put procedures in place at the outset, even for start-ups. This includes defining everyone’s roles and responsibilities and the contributions they make. Flexible but structured governance is needed to support the rapid growth of start-ups.

2. Risk culture

Risk culture is a fundamental element of governance. It must be promoted from the top down in the organisation. This includes training employees to make them aware of the risks and control measures. A good risk culture helps to protect the interests of all stakeholders, including employees, clients and shareholders.

3. Risk management and cybersecurity

With increasing digitisation, cybersecurity has become a crucial aspect of governance. Companies need to put in place mechanisms to protect themselves against cyberattacks and ensure data security. This includes the use of tools such as digital signatures and compliance with regulations such as GDPR.

4. Transparency and communication

Transparency is a key principle of good governance. Companies need to be honest and open in their communications, both internally and externally. This includes publishing financial and non-financial reports to demonstrate the company's stability and credibility. Transparent communication helps build trust with stakeholders.

5. Flexibility and adaptability

Governance must be adapted to meet the specific needs of each company. There is no single model. Small businesses, in particular, need to find flexible ways of establishing effective governance without the formal structures of large companies. This can involve advisory boards or mentors to guide strategic decisions.

6. The role of investors

To attract investors, it is crucial to have good governance in place. Investors are looking for companies with clear structures and well-defined decision-making processes. Solid governance can facilitate access to capital and support long-term growth.

7. Training and awareness-raising

Ongoing training for managers and employees is essential to maintaining good governance. Companies need to invest in training programmes to raise awareness of risks and best governance practices. This helps to create a resilient and adaptable corporate culture.

Conclusion

Corporate governance and risk management are essential elements in ensuring the stability and growth of companies, including banks. By adopting solid governance practices, companies can better manage risk, attract investors and ensure their long-term survival. Good governance is not only a regulatory obligation: it is also a strategic advantage that contributes to resilience and ensures long-term performance. By investing in transparency, risk culture, cybersecurity and ongoing training, companies can create an environment of trust and security for all stakeholders.

Want to find out more?

This article is a short extract from the “Evergreens by Spuerkeess” podcast hosted by Bryan Ferrari, which we invite you to listen to in order to discover all the discussions with our guests and get valuable advice from them. “Evergreens by Spuerkeess” is available on all major streaming platforms.

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