Beyond the Board's 'Yes': Unpacking the Disconnect Between Governance and Operational Reality

This article critically examines how board approvals, while procedurally sound, can lead to institutional failures due to a fundamental disconnect between the information presented by management and the underlying operational reality. For internal audit and assurance professionals, this highlights the crucial need to look beyond formal governance processes and scrutinize the completeness and timeliness of information provided to boards, especially concerning evolving risks and strategic rationales. It underscores the challenge of ensuring that board decisions are based on a true understanding of the current landscape, not just a well-crafted proposal.