Which term refers to the overall framework of rules and processes that govern a company's compliance?

Which term refers to the overall framework of rules and processes that govern a company's compliance?

• A. Graphic rating scale
• B. Governance
• C. Grievance
• D. Going rate approach

Answer: (B)

Governance refers to the overall framework of rules, practices, and processes that guide how an organization ensures compliance, ethical behavior, and accountability. It includes the structure of the board and leadership, policies and procedures, internal controls, risk management, training, audits, and monitoring that together set expectations and oversight for adherence to laws and standards. This is distinct from a graphic rating scale, which is used for evaluating employee performance; a grievance, which is a formal complaint from workers; and a going rate approach, which is a method for setting pay based on external salaries. So governance best captures the comprehensive system that governs compliance across the company.

Governance refers to the overall framework of rules, practices, and processes that guide how an organization ensures compliance, ethical behavior, and accountability. It includes the structure of the board and leadership, policies and procedures, internal controls, risk management, training, audits, and monitoring that together set expectations and oversight for adherence to laws and standards. This is distinct from a graphic rating scale, which is used for evaluating employee performance; a grievance, which is a formal complaint from workers; and a going rate approach, which is a method for setting pay based on external salaries. So governance best captures the comprehensive system that governs compliance across the company.