A governing body approves a strategic plan but does not track progress. What governance gap exists?

• A. Failure of strategic oversight
• B. Lack of ethics compliance
• C. Ineffective risk management
• D. Poor financial reporting

Answer: (A)

The main idea here is that governance relies on ongoing oversight of how a strategy is being executed. When a governing body approves a strategic plan but then doesn’t track progress, it fails to monitor and hold management accountable for delivering on those objectives. This lack of monitoring means the organization can drift from the plan, miss milestones, or encounter unaddressed issues, and there’s no timely corrective action. In short, the governance gap is a failure of strategic oversight.

This isn’t primarily about ethics compliance, risk management, or financial reporting. Ethics concerns conduct and adherence to standards; risk management focuses on identifying and mitigating risks; financial reporting deals with the accuracy and transparency of financial information.