Financial Governance
Financial Governance is a set of systems and controls that aim to organize and manage the financial resources of institutions and companies in a transparent and responsible manner, to ensure that financial objectives are achieved efficiently and effectively, while taking into account the public interest and protecting the rights of shareholders and stakeholders. Financial Governance focuses on improving financial performance, reducing risks, and enhancing transparency and accountability.

Financial Governance Objectives:

Achieving Transparency:
Ensuring that financial information is presented accurately and clearly to all stakeholders, such as shareholders, investors, and regulatory authorities.

Accountability:
Ensuring that all those responsible for financial management make responsible and sound decisions, and are subject to continuous review by the relevant authorities.

Financial Risk Management:
Developing mechanisms to measure and assess potential financial risks, and taking preventive measures to reduce these risks and maintain financial stability.

Achieving Financial Efficiency:
Enhancing the effectiveness of the use of available financial resources, and ensuring that budgets are properly allocated to achieve the strategic objectives of the institution.

Compliance with Laws and Regulations:
Adhering to all local and international regulations and laws related to financial affairs, including taxes and financial auditing.

Fundamental Principles of Financial Governance:

Transparency and Financial Disclosure:
Institutions must provide accurate and regular financial reports, including all the necessary information that shareholders and stakeholders need to make informed decisions.

Internal Control:
The need for a strong internal control system to ensure the integrity of financial operations and prevent illegal or fraudulent operations.

Independent Audit:
The presence of independent external auditors who audit the financial accounts to ensure their accuracy and reliability, and provide recommendations for improvement if necessary.

Strategic Financial Planning:
There must be well-thought-out strategic financial plans to ensure the achievement of future goals, including financing, investment and savings strategies.

Balancing Risks and Returns:
Potential financial risks must be accurately identified and evaluated, so that financial decisions are made with a balance between risks and potential returns in mind.

Benefits of Financial Governance:

Improving Trust:
Financial governance enhances trust among investors and shareholders, as it ensures that financial decisions are made based on accurate and reliable data.

Increasing the effectiveness of financial resource management:
By implementing strong control systems, financial resources can be maximized and losses can be minimized.

Improving the ability to face financial crises:
Through good planning and risk management, the organization’s ability to deal with financial crises increases effectively.

Considering social responsibility:
Financial governance can contribute to ensuring that financial decisions are in line with ethical and social values, including environmental and social responsibility.

Applications of financial governance in institutions:

• Private and public companies: Adopting financial governance practices to ensure compliance with financial reporting standards and transparency.
• Non-profit organizations: Implementing financial control systems that ensure that financial resources are used to achieve social goals.

Conclusion:
Financial governance is an essential element in corporate business management, as it ensures that institutions operate efficiently and transparently, while protecting the rights of shareholders and stakeholders, and achieving long-term financial sustainability.