Given the level of complexity and risk that’s being introduced into all spheres of life by hyper-automation and digitisation, governance processes and tools have to become more adaptable and scalable.
The hierarchical and archaic nature of traditional decision-making structures and protocols is increasingly being questioned, and the role of compliance as opposed to governance has come under serious scrutiny.
So says Letlhogonolo Moroeng, head of business systems and projects audit, South African Reserve Bank, who will be presenting a talk at the ITWeb Governance, Risk & Compliance 2020 conference, to be held on 25 and 26 February at The Forum in Bryanston. The topic of his presentation is: 'How digitisation is transforming governance tools and processes'.
“Business now wants risk assessments, governance arrangements and audit reports which are based on data,” adds Moroeng. “The proliferation of data and advanced analytics demands that things be done efficiently and fast.”
He says times have changed, and businesses now have to contend with exponential changes which demand that they adapt or die.
“Decentralised decision-making structures, supported by high levels of accountability, must be the order of business as opposed to, for example, monthly reports that come only at the end of the month, and which may be after the fact.”
Moroeng says auditing professionals must audit at the speed of risk, as close as possible to the point of the control failure, and findings must be supported by data. “The fact that the gap between technology and business is closing (the morphing of business and IT) means we need business people who are au fait with technology, as well as technology people who have a deep understanding of business.”
Those charged with governance, which include risk, audit, regulation and compliance professionals, are faced with businesses that are always transacting, have no rigid office hours and are hyper-complex. They are also dealing with an always-on and always-connected world. “Technology and business are changing faster than a policy approval process,” Moroeng says.
He says there are several benefits to digitising governance tools and processes, including the fact that this will make them far more responsive. “Efficiency will be introduced into what would be traditionally inefficient, inhibitory processes, and technology discussions are now happening increasingly at the board level.”
Delegates attending Moroeng’s talk will gain an understanding of the difference between compliance and governance, and the value of governance, and will learn about the key characteristics of an adaptable governance process. Finally, they will hear why it is necessary to automate audit and risk management.
