Brokerage firms typically use Governance meetings as the primary mechanism to shape their strategic decisions. Executives and board members from all levels of seniority come together to discuss the firm’s strategic direction and evaluate its long-term priorities during Governance meetings.

In order to provide the board with the information needed to review the firm’s current position, departmental reports are submitted for review at each Governance meeting. These reports provide the board with information such as: financial performance updates; reviews of the firm’s risk exposure; potential opportunities for expanding into new markets; and/or updates on developments in legal and regulatory requirements. By reviewing this information, the board will have an understanding of how the Brokerage Firm is positioned at that time.

Governance meetings typically include discussion of the major strategic issues affecting the Brokerage Firm. Examples of these are: whether to expand into new markets, develop and/or offer new trading products; and/or increase technology capabilities. Each of these areas will be evaluated under the scope of operational capabilities and exposure to risk.

Governance meetings also address the issue of risk management. Board members at Governance meetings evaluate the financial, operational, and market risks the Brokerage Firm is exposed to and may recommend changes to specific policies or to the strategic priorities of the firm.

Ultimately, Governance meetings provide the foundation for long-term growth and success of the Brokerage Firm through structured discussions and an evaluation of relevant data. Consequently, Governance will impact the firm’s long-term development and success.