10 Implementation Steps of Financial Governance by Abdul Khaliq

These ten steps serve as a foundation for further development of an implementation plan. These are described in their simplest form.

I have included four challenges usually faced by the implementation team. Take them into account during the planning stage.

✅ Initiate
Start by creating a project plan and timeline to guide the implementation process and ensure timely completion.

✅ Current State Assessment
Evaluate the existing financial practices, policies, and procedures to understand the strengths and weaknesses of the current system.

✅ Risks Identification
Identify potential financial risks and vulnerabilities that could impact the organization's financial stability.

✅ Prioritize Risks
Prioritize the identified risks to address the most critical ones first, based on their potential impact.

✅ Design Controls and Map Risks
Develop effective controls and procedures to mitigate the identified risks and map each control to the corresponding risk.

✅ Draft Report
Prepare a comprehensive report outlining the financial governance structure, risk assessment, and proposed controls.

✅ Review by Management
Present the draft report to the management for feedback, input, and approval.

✅ Approvals
Obtain necessary approvals from relevant stakeholders based on the organization's delegation of authority framework.

✅ Implementation & Awareness
Roll out the approved financial governance structure across the organization, raise awareness about the changes, and provide staff training to ensure understanding and compliance.

✅ Monitor, Improve, and Update
Regularly monitor the effectiveness, gather feedback, and make improvements as needed. Update policies and procedures to adapt to changing circumstances and regulations.

✅ Challenges:
- Lack of Resources
- Compliance Risk
- Competing Priorities
- Ineffective Communication