Economic instability sharpens focus on good governance

A rise in business complexity and regulation is leading to a pressing need for businesses to improve transparency in reducing exposure to risk, according to the Institute of Chartered Accountants in Australia (the Institute).

A new publication – Governance Risk and Compliance ( http://www.charteredaccountants.com.au/~/media/Files/News%20and%20media/Reports%20and%20insights/Governance%20risk%20and%20compliance%20audit%20committee%20guide_FINAL%2001%2006%2012.ashx ) – is the latest in a series of audit committee guides ( http://www.charteredaccountants.com.au/Industry-Topics/Audit-and-assurance/Current-issues/Audit-Committee-Guides ) for corporate Australia, and has been written to provide guidance to audit and risk committees in evaluating and improving their risk and compliance processes.

The Institute’s General Manager – Leadership and Quality, Yasser El-Ansary ( https://www.charteredaccountants.com.au/secure/myCommunity/people/yelansary ), says the publication highlights the need for businesses to align governance, risk and compliance activities with strategic direction, particularly amid the prevailing economic climate.

“A sound governance framework allows company boards and senior executives to better identify risks that could have a damaging impact on organisational performance. The silver lining around the economic instability cloud is that there is an important opportunity to sharpen the focus on business strategy and governance processes as one way to help manage the key issues that are likely to impact their bottom line,” he says.

The paper – produced in conjunction with KPMG ( http://www.kpmg.com/au/en/pages/default.aspx ) – explores themes such as integrating governance risk and compliance processes within an organisation, implementing a strategic approach to the key issues, and why businesses are seeking a smarter approach to managing risks.

For a copy of the publication, please visit our website ( http://www.charteredaccountants.com.au/Industry-Topics/Audit-and-assurance/Current-issues/Audit-Committee-Guides/Audit-Committee-Guides/Economy-heightens-need-for-Governance-Risk-and-Compliance.aspx ).
The Institute of Chartered Accountants in Australia