BUAW - Structure and Governance Flashcards
What is a functional structure?
Divides business into specialised functions such as sales or production
What is a divisional structure?
Could be geographical or specialism divisions, each division has the necessary resource to support its area
What is a matrix structure?
Individuals work across teams and in their own department, project with different departments
What’s a tall organisational structure?
Organised by function and chain of command, layers of management and clear reporting lines
What’s a flat organisational structure?
Few levels of management, easy decisions, not much room to move up
What is corporate governance?
Systems in place to direct and control the way the business operates
What is financial governance?
How the business collects, manages and controls financial information
What is legal governance?
Ensure it complied with necessary legislation and regulations
Difference between centralised and decentralised control
Centralised is higher tier of management, decentralised is given to lower levels, bottom up approach
What is risk?
The possibility of something bad happening
What types of risk are there?
- Business
- Strategic
- Reputational
- Cyber
- Financial
- Operational
What does the TARA framework stand for?
Transfer
Avoid
Reduce
Accept
When should each of these be used?
High likelihood, low impact - Reduce
Low likelihood, low impact - accept
High likelihood, high impact - avoid
Low likelihood, high impact - transfer
