Governance focuses on the process of decision making within a business and the process by which decisions are implemented.

Good governance covers by is not limited to:

• business conduct – including management of customer relations, transparent finances, accountability, honestly, and resources and staff management
• quality outcomes – ensuring products/services provided by the business meet the highest standards
• compliance – ensuring the business covers all regulations, legislative requirements, and follows the rules
• risk management – protecting the business from possible negative impacts, as well as recognising opportunities and capitalising on them.

Effective governance can help improve performance, satisfy customer needs and meet compliance requirements.

Good governance sets the framework in which businesses operate.In a small business, governance practices are set in place and maintained by the business owner, but it is important to ensure that all staff members are involved.