Institutionalisation covers organisational structure, job descriptions, the delegation of authority matrix, budgeting and reporting systems, internal control and the functioning of the board. In family businesses, it is an important precondition for generational transition, growth and access to external finance.
Related terms
Family constitutionA shared document in family businesses that governs relationships between family, business and ownership, and the rules for family members working in the company, joining management and transferring shares.Corporate governance principlesPrinciples set by the CMB for listed companies concerning shareholders, public disclosure, stakeholders and the board of directors.Internal controlProcesses and controls designed by management to provide reasonable assurance regarding the effectiveness of operations, the reliability of financial reporting and compliance with laws and regulations.Compliance auditAn examination of whether an organisation's activities are carried out in accordance with the relevant laws, regulations, contracts or internal rules.Compliance officerThe authorised person responsible for running the compliance programme for the prevention of money laundering and terrorist financing at an obliged entity.Compliance programmeThe full set of policies, procedures, controls, training and monitoring activities an organisation puts in place to ensure compliance with laws and internal policies.
Last updated: October 22, 2026 · This definition is for general information only.