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Governance is the system by which entities are directed and controlled. It is concerned with structure and processes for decision-making, accountability, control and behavior at the top of an entity. Governance influences how an organization’s objectives are set and achieved, how risk is monitored and addressed and how performance is optimized. Governance is a system and process, not a single activity, and therefore successful implementation of a good governance strategy requires a systematic approach that incorporates strategic planning, risk management and performance management. Like culture, it is a core component of the unique characteristics of a successful organization.

Source: https://www.governancetoday.com/GT/Material/Governance__what_is_it_and_why_is_it_important_.aspx