If a board does not periodically review governance effectiveness, what best practice is missing?

• A. Continuous governance improvement
• B. Formal risk assessment
• C. Strategic planning process
• D. Board education

Answer: (A)

Regular evaluation of how governance is actually functioning is essential to keep the board effective over time. When governance effectiveness isn’t reviewed periodically, there’s no systematic feedback loop to learn from what’s working and what isn’t, and to adjust structures, policies, and practices accordingly. This ongoing cycle of assessing, learning, and improving is continuous governance improvement. It ensures the board adapts to changes in strategy, risk, and stakeholder expectations, and it drives enhancements such as refining committee charters, information flows, decision-making processes, and the accountability framework.

Formal risk assessment focuses on identifying and managing risks; strategic planning defines direction and priorities; board education develops skills. These are important, but they don’t by themselves guarantee a recurring review of governance effectiveness.