Broadly, "governance" refers to a governing body's process of defining contexts, setting rules, policies and guidelines, and monitoring them for proper implementation. The process is often initiated to find a solution to a collective problem and to prevent its recurrence in future.
The governing body could be a government, a corporation, a market, a tribe or a family. One of the purposes of governance is to set goals and hold the proper stakeholders accountable for their achievement. The stakeholders likely to be affected by governance policies interact and coordinate their activities to ensure that the rules are followed and applied in the proper context. Governance activities can be formal or informal, depending upon their purpose, scope, organization type and the actors involved.