Seven action steps to improve governance.

• Position: Business Briefs

Corporate governance is the new watchword for U.S. companies working to comply with the Sarbanes-Oxley Act and requirements proposed by the major stock exchanges. But according to Protiviti, a leading internal audit and risk consulting firm, businesses may need to take additional steps to preserve value for shareholders and build public confidence.

Protiviti has developed a seven-question checklist for senior executives and boards of directors that focuses on personal accountability for corporate governance and development of ethical business practices.

1. Have we evaluated all business risks and their potential impact? While risks are inherent in any business, the key is understanding their impact and assessing potential setbacks that may emerge, such as short-term productivity slowdowns resulting from the implementation of new technology systems, or intellectual property issues that accompany product licensing.

2. Have we assigned responsibility throughout the organization? Employees at all levels must be given detailed descriptions of their respective responsibilities to monitor and manage business risks.

3. How involved is the board's audit committee in selecting and overseeing internal and external auditors? Audit committees should address issues such as staff qualifications, budgets, methods for evaluating internal and external auditor performance and support within the organization for these functions.

4. Are we encouraging responsible behavior among employees? Specific action steps to consider include establishing and...