COSO teams with NACD on corporate governance framework
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is collaborating with the National Association of Corporate Directors (NACD) to create a pioneering corporate governance framework. This initiative aims to achieve widespread adoption similar to COSO’s frameworks for internal controls and enterprise risk management.
In its formative phase, the partnership between COSO and the NACD is focused on laying down principles that will guide organizations in making decisions and governance practices both effective and efficient. Aimed predominantly at public companies within the U.S., the framework is also adaptable for private and public sector entities across the globe. It is being designed for utilization by boards, management, auditors, and stakeholders alike.
COSO, backed by five major financial and accounting organizations, joins forces with the NACD, a stalwart in corporate governance, for this initiative. This new framework is intended to complement COSO’s existing internal control and enterprise risk management structures, providing an invaluable resource for public companies seeking to refine their governance practices. Startups, private companies, and various industry participants will find the guidelines beneficial for establishing or enhancing governance practices and processes.
Statements from Lucia Wind, COSO’s executive director, and Peter Gleason, president and CEO of NACD, highlight the fundamental need for principle-based guidance in governance. They emphasize the crucial role of effective governance in fostering trust in the markets, promoting ethical practices, and driving long-term sustainable performance.
With proposals due by April 1, 2024, and a project completion goal set for June 30, 2025, the ambitious timeline underscores the urgency and importance of the initiative. Those looking to contribute must declare their intention by February 20, 2024. For interested parties, the RFP and submission guidelines are accessible through direct communication with COSO and NACD representatives.
