What will define governance between now and 2025?
A report released earlier today, The Future of the Governance Professional, shows that in 2025, governance professionals will “still be working to manage additional regulatory scrutiny, more extensive compliance requirements within a more complex working environment, on top of the technological issues around disruption, data management and rate of change”.
The report, from the Governance Institute of Australia, demonstrates how the fallout from the banking royal commission is set to define the role of governance professionals for the foreseeable future.
Speaking about the report, Governance Institute CEO Megan Motto said: “While much of the research focused on the effects of technology by 2025, such as the accelerated rate of workplace disruption via artificial intelligence, blockchain, and new data privacy legislation, it is clear that most governance professionals believe they will be dealing with the fallout of this year’s enormous regulatory changes for the foreseeable future.”
“This has been driven by the financial services royal commission, and other changes such as the Banking Executive Accountability Regime (BEAR) and the newly revised ASX Corporate Governance Principles, which now demand in-depth assessments on non-financial metrics, such as diversity, environmental sustainability and culture.”
What is interesting, Ms Motto continued, is that this impact will flow beyond the financial sector and into all types of Australian organisations, regardless of their size or industry, she posited.
“They all expect additional regulatory scrutiny, and compliance burdens, especially among the next generation of governance professionals,” she said.
The report also found that just 30 per cent of governance respondents stated that they were “well prepared” or “very well prepared” to face the challenges of the future and 9 per cent said they were not prepared.