Business World

Willis Towers Watson,

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Governance and controls. The problem is rarely what’s on paper. Regulatory pressure and compliance standards ensure that most organizati­ons meet required standards for adequate controls. The problem is seen in the implementa­tion of these controls in the daily life of the organizati­on.

What factors affect adherence to controls? There is a lot to consider. First, look at the individual responsibi­lities and supervisio­n — how clear are they? Then look at decision making and authority across the business — is it clear and do managers have the right skills?

It’s also important to look at workload to make sure overloaded employees aren’t taking the path of least resistance — with potentiall­y harmful consequenc­es. Related to this is the issue of organizati­onal structure, to make sure this too doesn’t encourage rule-breaking or corner-cutting. And, of course, it’s vital to examine the compliance and risk functions, to make sure they have the right capabiliti­es.

By focusing on these four key pillars, organizati­ons will equip themselves with the ability to both influence, measure and develop the culture required to achieve safe and sustainabl­e success.

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