The delegation of authority process is a key component of the governance, risk, controls, and compliance framework.

Authority is a crucial aspect of any organization. It refers to the power or right to perform certain actions or to make certain decisions.

However, it is not practical for one person to make all the decisions in an organization. Therefore, organizations should have an integrated, consistent process to delegate authority from the company boards to individuals and committees.

The delegation of authority process recognizes the distinction between corporate authorities (related to the organization’s entity) and organizational authorities (related to the internal organizational structure).

The Controller is the owner and is responsible for its maintenance of the delegation of authority process.

The objective of delegating authorities is to ensure that decisions are made at the appropriate level in the organization and that transactions are carried out by the appropriate company and in the appropriate place.

Authorities are delegated to individuals separately on behalf of a particular organization and/or as members of a Business or Function. Authority holders can only exercise their delegated authorities within the boundaries set by the organization’s governance, risk, controls, and compliance framework, applicable law, and regulations.

It is expected that authority holders are familiar with the definitions and the main principles applicable to the delegation of authority process. As this ensures that the right decisions are made and that transactions are carried out to create value.

The delegation of authority process is also important because it helps to prevent fraud and other forms of financial misconduct. By delegating authority to individuals who are responsible for specific areas of the organization, it becomes easier to detect and prevent fraudulent activities. This is because the individuals responsible for those areas are more likely to notice any irregularities or suspicious activities.

In addition, the delegation of authority process helps to ensure that the organization is operating efficiently. By delegating authority to individuals who are responsible for specific areas of the organization, decisions can be made more quickly and efficiently. This is because the individuals responsible for those areas are more familiar with the issues and challenges facing their areas of responsibility.

Finally, the delegation of authority process helps to ensure that the organization is complying with applicable laws and regulations. By delegating authority to individuals who are responsible for specific areas of the organization, it becomes easier to ensure that the organization is complying with all applicable laws and regulations.

Finally, the delegation of authority process helps to prevent all forms of financial recklessness, ensures that the organization is implementing a framework to support capital efficiency and operational excellence. Therefore, it is important for organizations to have regular reviews of how authority holders utilise delegated authorities.

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Author,
Sir (Dr) Leesi Gabriel Gborogbosi

Sir (Dr) Leesi Gborogbosi is the CEO of Gabriel Domale Consulting (Management Consulting Firm), Rivers State, Nigeria, helping companies in Africa to grow, provide insights to leaders and transform institutions. He worked for Shell for 26 years with significant contributions to strategy, planning, budget, project management, finance, cost reduction, contracting boards, governance, risk management, compliance, and performance management.

He has a doctorate in business administration (strategy), a doctoral degree in business studies, an MSc (Research Methodology in Management) from IE Business School, Madrid, and an MBA (Finance and Banking) from the University of Port Harcourt, Nigeria; and BSc (Accountancy) from the University of Nigeria, Nsukka. He had his secondary education at Federal Government College, Jos, Nigeria. His doctoral dissertation focuses on strategy implementation, the role of oil and gas middle managers, and collaboration with oil and gas host communities.

He leverages his professional experience as a Certified Management Consultant (CMC); Fellow, Institute of Chartered Accountants of Nigeria; and The Institute of Management Consultants. Also, he is a Member of the Chartered Institute of Procurement & Supply, London, and the Nigerian Institute of Management.

He was nominated by the Strategic Management Society, Chicago for the "Best Conference Paper Prize Awards" in 2017 and 2015. He was appointed the Chair for the Session on “Leading change implementation processes” at the Strategic Management Society conference in Denver, United States in 2015.

Sir (Dr) Leesi Gabriel Gborogbosi has about three decades of leadership experience in the oil and gas industry. He is an expert in finance, strategy, corporate governance, transformation, cost management, leadership, training, and problem-solving. leesi.gborogbosi@gmail.com