What is a primary benefit of having a well-defined governance architecture?

A well-defined governance architecture provides a clear framework for establishing accountability, roles, and responsibilities within an organization. This enhances compliance with regulations because it ensures that all governance processes are aligned with legal and regulatory requirements. A strong governance structure minimizes risks related to non-compliance by defining policies and procedures that comply with relevant laws and standards.

Furthermore, a well-structured governance architecture facilitates better decision-making and promotes transparency, making it easier to monitor compliance and adjust practices as necessary. This can lead to improved relations with regulators and stakeholders, reinforcing the importance of governance in maintaining both compliance and operational integrity.

In contrast, options that suggest increased costs, decreased accountability, or limited stakeholder involvement do not align with the benefits that a robust governance architecture is intended to provide, as it typically aims to enhance efficiency, foster engagement, and clarify accountability rather than hinder these aspects.