“Governance of non-financial risks will continue to be a focus area as organisations seek to increase the maturity of their oversight and management,” the white paper read.

“That includes effective monitoring of compliance with non-financial risk appetite parameters and identifying appropriate metrics to review ongoing performance.”

There is a catch-22 situation for boards, Diligent argued, when it comes to rewarding non-financial risk management.

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“Remunerating effective non-financial risk management when an organisation falls short of its financial goals is widely frowned upon by investors. Conversely, strong financial performance is frequently rewarded even when other areas are deficient,” it wrote.

“Irrespective of the strategic, cultural and regulatory importance attributed to non-financial risks, this disparity means money still talks when it comes to motivating change.

“Embedding the cultural imperative that the right outcomes only matter if they result from the right actions remains a challenge for many boards.”

In the same white paper, Diligent posited that mounting external pressures are confronting a wide range of organisations. Furthermore, it argued that businesses have to ensure they are doing more than just the bare minimum in order to meet public expectations moving forward.