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12 Gibraltar International www.gibraltarinternational.comIn entrepreneurial environments, high importance is given to providing employees with the autonomy to enable them to grow and develop business without constraint. When the balance between autonomy and oversight goes wrong however, it can have disastrous consequences.There have been recent cases where a lack of good governance over their businesses have resulted in substantial losses for investors/shareholders. At the heart of the issue has been a lack of oversight and control. It is essential to make sure that those managing a business have their objectives aligned with those of its owner(s), that there are good controls over money exiting the business and generating the right culture in the firm. Without good governance the consequences can include management fraud, serious breaches of legal/regulatory requirements, and decisions being made against the interest of those with significant ownership. A robust governance frameworkBy the time the importance of having a robust governance framework is realised, it can be too late and incredibly costly (in terms of money, time and reputation) to rectify. There are some common underlying causes, and it is important to get them right.Board representationWhen a significant investment is made in a company, it is important to ensure that there is adequate and effective board representation so that good decisions are made, and that they are aligned to the interest of the owners. Without this representation there can be both a lack of oversight to identify problems in the business, or even an inability to prevent decisions being made that BusinessThe importance of having a robust governance frameworkContinued p14By Craig Doyle, Director - Business Risk Services, Grant Thornton Gibraltar