Poor governance leads to increased risk of mismanagement. This can give rise to significant financial and reputational implications, as well as the potential for governmental, regulatory sanctions or criminal prosecution. ESG and its associated compliance requirements only adds to the growing number of class action cases as investors, consumers, and employees increasingly look beyond the bottom-line. Stakeholder expectations are shifting in focus and demanding more. They are also assessing what businesses are doing to address climate change, tackle human rights abuse and improve inclusion and diversity in a real and meaningful way.
Other factors that are considered as good governance vs. poor governance are often associated with areas such as how a company approaches its:
- structure and oversight;
- code of conduct and values;
- transparency and reporting; and
- cyber risk & technology systems.
Shareholder activism is driving companies to have to address the integrity of their operations. Alignment between what is being espoused in terms of Sustainable Business and ESG strategies and targets, and the evidence of what is being actually delivered, has never been so under the spotlight.
In addition, the lasting effects of COVID-19, the war in Ukraine and volatile global economic markets are leading to an increase in the rates of economic crime and fraud. This has only added to the pressure for business to focus on strengthening their corporate governance approach before it's too late. Mitigation of integrity risk and enhancement of risk resilience through independent assessment, testing, validation and review of governance and controls should feature as a top business priority on any boardroom agenda.
Our multi-disciplinary Business Integrity team includes leading expert lawyers, consultants, accountants, analysts, risk professionals, technologists and auditors.
We take a pragmatic and risk-based approach to your business integrity. We provide assistance from building resilience to complex, cross-border civil and criminal investigations and enforcement cases, as well as addressing critical issues in Data Protection and Cyber Security.
