Why care governance must be central to board strategy

Care as a core governance issue

In care settings, duty of care extends well beyond regulatory compliance. It goes directly to the lived experience of people who rely on these services and to the board’s role in safeguarding their safety, dignity and quality of life. Therefore, care cannot be siloed as an operational issue. It must shape strategy, inform risk appetite, influence major investment decisions and sit squarely within how boards think about executive performance and organisational culture. In these environments, good governance requires persistence and discipline. Boards must continue to ask questions when answers feel incomplete and reconsider decisions as the real-world impact becomes clearer.

Boards need to confront structural blind spots honestly. Care quality is too often separated from strategy and finance, when it should be central to both. Committees can unintentionally narrow responsibility rather than deepen accountability across the full board. Boards get large volumes of data on people in care, but far less insight from them.

The path forward

There is a shared responsibility for organisations like the AICD to clearly signal that governance expectations in care settings have changed and to support directors to meet them through practical guidance and accessible development. This work goes to the heart of our purpose – strengthening society through world-class governance.

As the independent and trusted voice of governance, the AICD has a critical role to play in driving a discussion about the future of care governance. That’s why we held our inaugural Care Governance Assembly in Sydney in February. The assembly brought together over 30 leaders from organisations across the country to chart a path forward.

I want to thank each of the participants for taking time out of their busy schedules to attend. The AICD is immeasurably stronger because of the voluntary contribution of our members who bring their expertise to important issues such as these.

Thank you also to the peak bodies who attended the assembly and with whom we will continue to partner, including National Disability Services, Ageing Australia, Council on the Ageing and Early Childhood Australia.

Care governance is one of the most demanding challenges facing boards today and one of the most important. Getting it right has a direct and lasting impact on our society and on the lives of people who rely on these services.

For our wider director community, this is a reminder that governance capability is not static. As the operating environment changes, so too must the skills, questions and judgement brought to the board table. As always, I’d love to hear your thoughts.

This article first appeared under the title 'Lifting expectations where it matters most' in the April/May 2026 Issue of Company Director Magazine.