Governance and audit: The power duo for organizational success

Earlier this year, Diligent had the extraordinary privilege of engaging in conversations with governance and audit leaders at the Society for Corporate Governance and the Institute of Internal Auditors (IIA) conferences held in Washington, D.C. What stood out? The management and mitigation of risk sit squarely at the intersection of corporate governance and internal audit.??

Nithya B. Das, Chief Legal & Administrative Officer at Diligent, talks about the transformative potential of collaboration between these essential functions.?

Throughout my career as a CLO, I have witnessed firsthand how a strong relationship between audit and governance contributes to the prosperity of an organization. These two functions jointly undertake critical initiatives such as enterprise risk management (ERM), coordinating seamlessly with internal audit, accounting, FP&A (financial planning and analysis), and management to ensure our ERM program is both comprehensive and effective. More broadly speaking, this collaborative partnership ensures that internal audit’s findings and recommendations receive due attention and are appropriately acted upon, leading to enhanced risk management and improved organizational performance and resilience.?

And yet, far too often, internal audit and governance teams fail to work together as effectively as they should. Despite sharing common objectives, collaboration with counterparts such as audit and accounting teams can be challenging due to competing priorities. To overcome these obstacles, pre-planning and understanding each other’s priorities are essential.?

Legal teams require precise, complete data in a finished format for disclosures, board decks, and committee materials, delivered promptly to meet stringent deadlines. Meanwhile, audit teams seek increased access to the board to not only heighten leaders' risk awareness but also to empower them to proactively identify new growth and opportunity areas stemming from risk assessments. Ultimately, audit teams aim for governance teams to recognize their potential as proactive partners in driving strategy and growth, rather than being seen solely as enforcers.?

Leaders at the Society and IIA conferences echoed my experiences and perspectives, affirming that a strong relationship between internal audit and the governance structure is fundamental to an organization’s success. Watch the video below to hear from these leaders —?who are dismantling barriers and elevating standards —?on:?

• Why risk management is more critical than ever,?

• How internal auditors can be allies, not adversaries,?

• And how, through clear communication and a unified taxonomy, organizations can pinpoint the risks and opportunities that matter most to drive better decision-making.?

Together, governance and audit functions drive organizations forward, making them more resilient and adaptable in an ever-changing business landscape. Learn more. ?