Who typically dictates policy within an organization?

In most organizations, policy formulation is primarily the responsibility of senior management. This group includes executives and other leaders who set the strategic direction and organizational goals. They have the authority to create, modify, and endorse policies that govern the entire organization. These policies are often developed to align with the organization’s mission, regulatory requirements, risk management strategies, and overall business objectives.

Senior management is uniquely positioned to ensure that policies reflect the organization's values and comply with both internal and external expectations. Their broader perspective allows them to consider the implications of various policies across different departments and functions, which is crucial for effective governance.

While roles like the security manager, Human Resources, and auditors contribute to the development and implementation of specific policies related to their areas of expertise, they typically operate within the frameworks established by senior management. Auditors focus on compliance and effectiveness of policies rather than creating them, and Human Resources manages policies related to personnel matters rather than overarching organizational directives. Therefore, the authority and responsibility for dictating policies lie predominantly with senior management.