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governance
Governance is the act (executed by, or behalf of some party) or process (of some party) of governing or overseeing the control and direction of something (Merriam-Webster). The governance of a party is embodied by the set of processes by which it decides how to make (other) decisions, how actors that it employs are to behave and operate, and ensure this guidance ends up in documents (which we will call policies).
As parties interact with one another, i.e. conduct business transactions, they need to decide whether or not to commit to a transaction proposal. Deciding about how to make such a decision is one of the subjects of the governance process of that party: it is establishing the kind of argument that may be used to make this decision.
Within eSSIF-Lab, governance is pretty much limited to the governance of various policies.
The Parties, Actors and Actions pattern provides an overview of how this concept fits in with related concepts.
The purpose for a party of having a governance process is that it enables him to reflect on the ways that it makes decisions. A typical topic for governance is the maintenance of the set of rules, working-instructions, preferences and other guidance that actors are supposed, or required to use when executing specific actions on behalf of that party.
For digital-actors such guidance consists of digital policies. A party whose governance process maintains a policy will be called the governor of that policy.