The vocabulary
The 21 defined terms the draft adds or adopts
Clause 3 of the draft is public in the ISO preview. It adopts the ISO 37000 and ISO 37004 terms and adds the group terms the guidance needs. Each term below has its own page: our statement of the definition, what it does in the draft, and how to use it when you map a group.
3.1 Groups of organizations 6
| Code | Term | Our statement of the definition |
|---|---|---|
| 3.1.1 | organization | A person, or a group of people, with its own functions, duties, powers and relationships, formed to reach obje... |
| 3.1.2 | organizational entity | An organization that exists distinctly and independently. In some cases it is also a legal entity.... |
| 3.1.3 | controlled entity | An organizational entity that has a controlling member stakeholder.... |
| 3.1.4 | group of organizations | An assembly of two or more organizations that share collective objectives.... |
| 3.1.5 | group of organizational entities | Two or more organizational entities, taken together because they share a purpose set for the group.... |
| 3.1.6 | controlled group of organizational entities | A group of organizational entities whose members share a controlling member stakeholder, where that stakeholde... |
3.2 Governance roles 4
| Code | Term | Our statement of the definition |
|---|---|---|
| 3.2.1 | stakeholder | Anyone, or any body, that a decision or an activity can touch, or that reasonably believes it will be touched.... |
| 3.2.2 | member stakeholder | A stakeholder with a legal duty or a defined right to decide matters concerning the governing body, and to who... |
| 3.2.3 | controlling member stakeholder | The member stakeholder whose control of the governing body is final. The draft calls it the controller.... |
| 3.2.4 | governing body | The person or group of people with ultimate accountability for the whole organization. Every organizational en... |
3.3 Governance concepts 5
| Code | Term | Our statement of the definition |
|---|---|---|
| 3.3.1 | principle | A fundamental truth, proposition or assumption on which a set of beliefs, behaviours or a chain of reasoning r... |
| 3.3.2 | accountability | An obligation owed to another person or body for fulfilling a responsibility, including the duty to inform and... |
| 3.3.3 | responsibility | An obligation to act and to take decisions in order to reach required outcomes.... |
| 3.3.4 | delegation | The assignment of authority and responsibility from the person or body that holds them to another.... |
| 3.3.5 | constituting documents | The authoritative and unique set of documents that establishes an organization's existence and its accountabil... |
3.4 Group governance components 6
| Code | Term | Our statement of the definition |
|---|---|---|
| 3.4.1 | organizational governance framework | The strategies, governance policies, decision-making structures and accountabilities through which an organiza... |
| 3.4.2 | group governance framework | The strategies, group governance policies, decision-making structures and accountabilities within which the or... |
| 3.4.3 | governance policy | The intentions and direction of an organization, formally expressed by its governing body.... |
| 3.4.4 | group governance policy | The written statement of what a group of entities intends and where it is heading.... |
| 3.4.5 | organizational purpose | An organization's meaningful reason to exist: the ultimate value it intends to create for the stakeholders it ... |
| 3.4.6 | group purpose | A group of organizational entities' meaningful reason to exist: the value the group intends to create for the ... |
The definitions are our statements of the public preview, not quotations. Only the term names stay verbatim. The preview stops at the end of clause 3; the rest of the draft is not public.
The definition decides the scope
Three terms do most of the work. A controlled group of organizational entities needs two or more entities, one controlling member stakeholder with ultimate control of their governing bodies, and a group purpose set by that controller. If any element is missing, the guidance does not reach the group, and the honest answer is out of scope rather than a low score.
The other terms support the model: the governing body, accountability, delegation, the group governance framework and the components. Use the draft's words in the board paper, even where the group uses a different internal term, so that a later reader can trace the reasoning.