The governance framework is composed of two dimensions: the performance dimension and the conformance dimension, which together represent the entire value creation, resource utilization, and accountability framework of an organization.

The conformance dimension tends to take a historic view, whilde the performance dimension is more forward-looking view, organizations can also address many of the risks associated with non-conformance and help ensure that effective measures are in place.

Conformance responsibilities focus on providing assurances to stakeholders:

- Concerning the effectiveness of the identification, prioritization, management, control, mitigation, and reporting of strategic, tactical and operational risks

- That the organization is working effectively and efficiently to achieve its strategic and operational goals

- That the systems generating financial and non-financial information are working within prescribed standards of accuracy and reliability, and that such information reflects the true performance of the organization

- That management’s fiduciary responsibility responsibilities are being met

- That the organization is able to prevent and detect criminal activities such as fraud, money laundering, theft, and misappropriation

- That the organization complies with all (other) relevant rules and regulations

Performance responsibilities focus on strategy, value creation, and resource utilization, and include:

- Establishment of a robust decision-making process, including the determination of risk apetite. Oversight of strategy implementation and evaluation of the strategy’s ongoing relevance and success

- Alignment of business operations and resource utilization with strategic direction and the organization’s levels of risk apetite

- Identification of the critical points at which an organization needs to make decisions in response to changing conditions

Performance and conformance dimensions enhance each other and the organization as a whole.

Source; IFA (Evaluating and Improving Governance in Organizations, 2009, pp. 8-9)