Strategic Planning and Governance
This domain tests whether you can connect strategy formulation to board-level governance: who sets direction, who approves risk appetite, and how the company secretary supports lawful decision-making. Expect questions on the strategy hierarchy, board committees, and Nigerian governance duties.
Core rules
- Strategy operates at three levels: corporate (scope and portfolio), business (competitive advantage), and functional (operations, finance, HR). Governance sits above all three.
- The Nigerian Code of Corporate Governance 2018 (NCCG) expects the board to set strategy and monitor management, not run operations. It follows an 'apply and explain' basis.
- CAMA 2020 codifies directors' fiduciary duties, care and skill, conflict-of-interest disclosure, and related-party transaction rules. Board committees such as audit, risk, nomination, and remuneration need clear terms of reference.
- The company secretary is the governance gatekeeper: board papers, minutes, conflicts register, and disclosure support.
- A sound planning cycle includes environmental scan (PESTLE, SWOT), mission and vision, objectives, initiative selection, resource planning, and monitoring.
Worked example
A board is asked to approve entry into a new regional market. Management presents a positive NPV. The board should test strategic fit, capital availability, risk appetite, regulatory exposure, and management capacity, not merely approve the number. The secretary records the challenge, the conditions (for example, phased entry and a stop-loss trigger), and any director conflict. That minute becomes evidence of proper deliberation and supports later accountability.
Traps
- Confusing board approval with operational execution.
- Treating the strategy document as a one-off annual ritual.
- Missing related-party disclosure or minute-taking gaps.
- Citing governance codes without explaining the 'apply and explain' basis.