What principle states that a governance system should be tailored to the enterprise's unique needs?

The principle that a governance system should be tailored to the enterprise's unique needs emphasizes the importance of customizing governance structures and processes to fit the specific context, culture, goals, and challenges of an organization. Every enterprise is different, with its own set of stakeholders, regulatory environments, and strategic objectives. By adhering to this principle, organizations can ensure that their governance frameworks not only align with their overall business strategies but also effectively address their unique risks, opportunities, and operational realities.

This tailored approach enables organizations to enhance their governance effectiveness and improve decision-making by ensuring relevance and appropriateness in the governance practices they implement. It recognizes that a one-size-fits-all model is often inadequate for achieving desired outcomes in various enterprise settings. Through proper tailoring, organizations can also foster better engagement with stakeholders and ensure their governance approach supports ongoing alignment with enterprise goals.