FI MERCER Founder & CEO, Governance Evaluator
The top 5 governance risks identified by health boards
In 2018 Governance Evaluator surveyed over 70 boards and 700 board directors on organisational governance performance. Health, aged care, and government, not-forprofit and community boards were among those included. Responses were analysed and presented in our Governance Evaluator 2018 Governance Capability Benchmark Report. Due to the differing challenges faced by different types of healthcare organisations, we analysed small, medium and large health services as separate cohorts, as well as community health services as another separate cohort. Across health sector cohorts there was
Risk 1: Stakeholder engagement Stakeholder engagement is reported as problematic for boards across the health sector, and indicates a need for targeted, focused reviews of current stakeholder management policies and processes. With 41% of health board directors unsure or not satisfied with stakeholder communication processes, and 46% not confident that they manage stakeholder influence effectively, boards need help in engaging their own directors via a stakeholder engagement strategy that clearly identifies the organisation’s key stakeholders, their relationships and their needs. Many directors were unsure about their board’s position and activity in this area.
Risk 2: Governance of clinical care Many directors reported being either dissatisfied,
remarkable agreement on the top five
unsure or qualified in support of their organisation’s
governance risks, and every health cohort
governance of clinical care,
reported stakeholder engagement as its ‘number 1’ risk. The top five governance risks identified by health boards were as follows.
Dissatisfaction was strongest in the areas of partnering with consumers (43% of health board directors unsure or not satisfied with performance), and board capability to lead a safe and quality culture, (34% of directors not confident).
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The Health Advocate • AUGUST 2019
