#99 - Valuable real estate!

25 Feb 26

Good governance is often talked about in abstract terms; frameworks, committees, policies. But when things go wrong, governance becomes very concrete, very quickly.

Regulators, courts, and investigators do not ask whether governance felt proportionate. They ask whether it can be demonstrated. Who was accountable. Who was authorised. Who approved. Who signed.

In heavily regulated environments, governance is not a backdrop to leadership...it is leadership. And in that context, a signature is not an administrative act. It is legal real estate.

What?

At its core, governance answers a small number of unforgiving questions:

• Which regulatory or legislative standards apply to this organisation?

• How are those obligations translated into policy, process and controls?

• Who is accountable for compliance? Not collectively, but specifically?

• Who is authorised to approve, sign, and certify compliance?

When governance is unclear, informal, or assumed, organisations expose themselves to serious risk:

• Regulatory breaches,

• Personal liability for directors and senior leaders,

• Invalid or unauthorised approvals,

• Decisions that cannot be defended after the fact.

Governance that exists only 'in principle' does not protect anyone.

Why?

Most governance failures are not deliberate. They emerge when governance fails to flow down the organisation with clarity and discipline.

Common breakdowns include:

• Accountability that is shared, blurred or assumed,

• Responsibility delegated without authority being clearly defined,

• Authority granted without understanding legal exposure,

• Approval rights that expand informally over time.

As organisations grow or change, roles shift faster than governance is updated. People continue signing documents because 'they always have'. Others defer decisions because they are unsure where authority truly sits.

Over time, governance becomes performative:

Policies exist.
Sign-offs happen.
But no one can clearly explain why this person was authorised to approve that decision.

That gap is exactly where regulators focus.

How?

Effective governance is explicit, not assumed.

It starts with clear accountability:

• Who is legally accountable for compliance with each obligation?

• Where does that accountability sit at board and executive level?

• What cannot be delegated under any circumstances?

From there, responsibility can be delegated but only with:

• Defined scope,

• Documented authority,

• Clear escalation thresholds,

• Ongoing oversight.

Critically, organisations must be explicit about:

• Who is permitted to approve policies, controls and submissions,

• Who is authorised to sign regulatory returns or attestations,

• What checks are required before a signature is applied?

In this environment, a signature is not shorthand for trust. It is a formal declaration of assurance.

In regulated environments, signatures are evidence.

They signal:

• Accountability,

• Authority,

• Due diligence,

• Personal and organisational responsibility.

When something fails, investigators do not ask who drafted the document. They ask:

Who approved it?
Who authorised it?
Who signed it knowing what it represented?

A signature given without proper authority, understanding, or governance support exposes both the individual and the organisation.

That is why disciplined organisations treat signatures as scarce and valuable not routine.

In Summary

Governance is not about slowing organisations down. It is about ensuring they can stand up to scrutiny when it matters most.

Clear governance:

• Flows accountability deliberately,

• Delegates responsibility safely,

• Defines authority precisely,

• Protects individuals as well as the organisation.

In regulated environments, governance is not optional and signatures are not admin.

They are commitments.

And when governance is tested, it is those commitments which are written, approved and signed, that determine whether an organisation is protected or exposed.

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