Robust Compliance Reporting Can Help Agencies Weather An Integrity Storm

Creating robust reporting systems that provide immediate access to Governance, Risk, and Compliance (GRC) data can help agency leaders stay ahead of emerging GRC problems and avoid being embroiled in integrity scandals.

Global Director of GRC at Torque Software, Zane Edwards, said recent corporate governance failures in Australia were a timely reminder of the need for vigilance when it comes to compliance.

He said a GRC crisis can damage public and stakeholder trust in an organisation, sometimes irreparably, and expose it to possible legal action.

“Every organisation has an implicit social and or political license to operate,’’ Mr Edwards said. “If trust fails, that license disappears; sometimes forever. The value of trust cannot be underestimated.’’

Mr Edwards said that, given the focus on GRC issues, it was essential for agencies to establish a robust way of capturing reports of key integrity activities such as conflicts of interest, gifts and benefits, official hospitality, outside employment, and probity declarations.

He also said, in the current compliance environment, it is no longer defensible for public sector agencies to rely on email, Word documents, spreadsheets, and paper forms without the capacity to support analysis.

Solutions such as Torque Software’s Lighthouse, a governance and compliance platform, provide an integrated solution to capture, manage, and report integrity issues and can help agency leaders effectively and efficiently manage their GRC requirements.

The PwC tax scandal thrust GRC back into the spotlight. The scandal erupted when it emerged that PwC, which advised the government on tax, had leaked secret government tax plans to corporations it worked for and used the inside information to help them avoid the new tax provisions.

The Senate inquiry into the PwC scandal recommended a central register for conflicts of interest breaches for use by government entities. It also recommended improved guidance on conflict-of-interest management, including active management of conflicts of interest throughout project management of a contract.

Furthermore, the ANAO has recently issued a series of critical audits of GRC practices in government.

It criticised the Productivity Commission’s credit card register as “incomplete and inaccurate and monitoring and reporting on credit card use was not regular and systematic’’.

Additionally, Treasury was criticised for a lack of transparency in public reporting of hospitality that officials have received.

Australia’s ranking in the Transparency International Corruption Perception Index, from 7 in 2013, to 14 in the most recent survey, has also presented a concern to governments. This has led to the establishment of state and national integrity commissions across Australia.

Mr Edwards said that demonstrating a strong commitment to compliance reinforces trust among an organisation’s stakeholders.

“When stakeholders know an organisation acts within the law, abides by the relevant standards, and always endeavours to act with integrity, they are more likely to invest their trust in the organisation,’’ Mr Edwards said.

Effective assurance requires current, accurate, and accessible data to assess against integrity expectations, he said.

Torque Software Founder and Managing Director, Tim Canham, said Lighthouse can help agencies create tailored compliance solutions that will allow them to not only record compliance data but also analyse issues to avoid major problems.

Lighthouse features live dashboards as well as scheduled and on-demand reporting which allow agency leaders to quickly identify and address issues before they become major problems.

“Clients can customise terminology and process flows to meet their agency needs,’’ he said.

“The versatility of Lighthouse supports tailoring of the product within legislative requirements allowing agencies to build their own forms and workflows, ensuring confidence that they are maintaining better practice.”

Mr Canham said Lighthouse can help agencies get on the front foot in managing GRC issues. “Lighthouse effectively helps organisations turn their policies into process’’, he added.

With more than 100,000 users, mainly in the public service, Torque Software’s partnership with government provides a unique opportunity for agencies to gain insight into the governance, risk, assurance, and compliance landscape of their counterparts and leverage expertise to achieve integrity maturity.

“This is about not just responding to something that has happened but getting on the front foot to prevent non-compliance and corruption issues. Lighthouse provides assurance for today and tomorrow” Mr Canham said.

This article was originally published on The Mandarin at? https://www.themandarin.com.au/250486-robust-compliance-reporting-can-help-agencies-weather-an-integrity-storm/