Willis Towers Watson,
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.