Make decision-making responsibilities clear
Identify which decisions belong to the owners, board, management and delegated teams. Financial approval limits, escalation routes and reporting responsibilities should be understandable in practice. The right arrangements depend on the company, its governing documents and any specific obligations; a generic template does not establish compliance.
Give oversight a reliable financial foundation
Management and boards need information relevant to the decisions in front of them. Connect trading performance, cash, funding and significant commitments with clear explanations and known information limits. A current dashboard is useful only when readers understand what has been reviewed and what is provisional.
Link risk, action and accountability
A risk register is more useful when it explains the issue, potential impact, owner, response and review date. Distinguish an action completed from a risk resolved. Significant changes, exceptions and overdue actions should reach the appropriate decision-maker through an agreed routine.
Keep governance proportionate to the business
Some governance frameworks have specific audiences and reporting requirements. The FRC’s Wates Principles, for example, are designed for large private companies; they are not automatically a mandatory code for every SME. Relevant legal or regulatory obligations and the company’s documents need separate assessment.
A practical governance discussion
| Area | Question to resolve |
|---|---|
| Decision rights | Who can approve which commitments, and what must be escalated? |
| Reporting rhythm | What information reaches each meeting, and when? |
| Risk oversight | Who owns each significant risk and response? |
| Actions and records | How are decisions, responsibilities and follow-up recorded? |
| Conflicts and changes | How are interests, exceptions and changes brought to attention? |
This is an illustrative starting point for financial governance discussions, not a legal compliance checklist.
How we define the engagement
Explain the business structure, current meetings, reporting concerns and decisions needing better oversight. Consult EFC can discuss practical financial governance, reporting and accountability support. Legal advice, company-secretarial services, formal code compliance and audit or assurance are not implied; any additional work must be specifically assessed and agreed.
Explore decision-focused board packs, controls and processes and management accounts.