What is included in a statement of corporate governance?

A statement of corporate governance is designed to provide stakeholders with insights into how a corporation is managed and the systems in place to ensure accountability and transparency. Among the elements typically included in this statement are governance structures, processes, and policies designed to manage risk effectively.

In this context, incorporating a corporation's risk management strategies is crucial because it outlines how the organization identifies, assesses, and mitigates risks that could impact its objectives and financial health. This demonstrates a proactive approach to governance and builds trust with shareholders and other stakeholders, showing that the company is committed to sustainable operations.

Financial statements, external audits, and personal motivations of board members, while relevant to corporate operations, do not directly reflect the governance practices that manage risk. The focus of a corporate governance statement is to provide clarity on how risks are managed rather than detailing financial reckoning or personal attributes unless such motivations directly relate to governance responsibilities.